The point is

Consider what the point for five-digit quotes (EURUSD = 1,44567).

The market attracts more investors, as it is characterized by:

Changing the price of an item means changing quotes by 0.0001 (the fourth decimal place). Paragraphs measured gain / loss on the transaction, as well as the difference between the purchase price and sale price. How does it work in practice, Let's consider an example.

Example:
The transaction in EURUSD opened at a price of 1.44565 and closed at a price of 1.44595. How many points was the price?

Item - it is the fourth decimal place. Price changed to (1.44595 - 1.44565) = 0.0003, that is, as much as three points.

There are also few tenths of a point, tens, hundreds, etc. For example, if the opening price was 1.44595, and the closing price - 1.44596, the price quotation was changed to 0.00001 (one-tenth point).

In the three-digit quotes one point - this is the second decimal place, ie, 0.01. For example, a change in the price of USDJPY from 80.011 to 80.061 - a change of 0.05, that is, as much as five points. In the same way as for the five-digit quotes, there is a few tenths of a point, and dozens of items and hundreds of items, etc.

Determining the value of the item depends on the position open and that a direct quotation, or the reverse.

For direct quotations (ie those in which the dollar in the first place) the cost of the item depends on the value of quotations at the close of entries:

The cost of the item = V * 0.0001 / K, where:

V - the value of open positions

K - the price at which the position was closed.

For the three-digit quotes instead of 0.0001 in the formula should be substituted 0.01. For example, we purchased 0.1 Lot USDCHF and closed the position at 1.2500. 1 point = 10000 * 0.0001 / 1.25 = 0.8 dollars.

For reverse quotations (the second highest dollar) cost of the item is determined by the much simpler:

The cost of the item = V * 0.0001 and the price of the currency does not. That is, for the position, whose value is 100 000 base units, 1 point is equal to 10 U.S. dollars no matter what currency pair for this position is open. Why are points in this case is measured in dollars?

The fact that the change in the value of one currency expressed in terms of another currency. When working with backward quotes a customer purchases a country's currency for dollars. It is logical to assume, and the change in the price of that currency will also take place in dollars.

In market practice, for clarity, 100 points - is a figure, professionals tend to know very well what the figure is now on the market and negotiate only about the last 3 digit quotes. For individuals accepted to give the full quotation in order to avoid different interpretation.