We have improved the way we price FX pairs to greater reflect the underlying interbank market by adding an extra integer to many of the quotes. The reason for doing this is to make our FX prices more accurate and thus give you a better and more accurate price to trade on.
On some trade tickets the very last number in the price may be a smaller digit. This smaller digit is not the actual tick size of the price, but simply an extra integer i.e. 1/10th of a point. Therefore, as a general rule, you will be trading on the last large figure of the price quoted, as you were before, but with the additional benefit of seeing an extra (smaller) digit for greater accuracy.
If we take an FX market such as GBP/USD, for example. Rather than quoting this market to four decimal places as a price of 1.5850-1.5852, we have added a smaller integer to make the quote five decimal places. In the example below, if you bought £1 per point of GBP/USD Rolling Daily at 1.58505 and sold £1 to close at 1.58510, your profit would be 50p.
The extra digit has been applied to FX markets only at this time.
Prior to us making this change, the buy price was rounded to the last tradable digit. Now, with the additional decimal place, you will see and be able to trade on a more accurate price.
Our spreads remain some of the tightest in the industry and what's more, our spreads are tighter for longer. So, when we say we have a 1 point spread on EUR/USD we'll quote a rate with a 1 point spread 24 hours a day.*
*LCG has the right to vary Overnight Financing interest rates, spreads or commission rates on any contract or vary the Size specifications without notice especially in, but not limited to, volatile market conditions and/or illiquidity of the Underlying Market. At LCG's discretion quoted spreads made via the telephone may differ from the spreads available on an OTP or a DTP.