Decimalized Pricing

The dbFX trading platform offers decimalized pricing, giving clients more precise FX prices by adding an extra digit to every currency rate.

Also referred to as fractional pips, prices are quoted in tenths of a pip to provide tighter spreads for our clients.

Why does dbFX offer decimalized pricing?

The extra digit of precision offered through decimalized pricing should reduce bid/ask spreads on every currency pair. Tighter spreads allow us to provide our clients with very competitive transaction costs.

How does decimalized pricing affect the value of a pip?

For the EUR/USD currency pair for example, the value of a one full pip movement from 1.4415 to 1.4416 is worth $10.00 for one 100K lot, for a USD based account. With decimalized pricing the currency can move in smaller increments, with a market movement as small as 1/10 of a pip, such as a market move from 1.4415⁰ to 1.4415¹. This 1/10 ^th of a pip increment movement is valued at $1.00 for one 100K lot, for a USD based account, 1/10 of the value of a full pip.

Who benefits from decimalized pricing?

Decimalized pricing benefits all clients, although it is particularly suited to high volume traders and those using automated trading strategies via an API.