Broker platforms that show the wrong number of decimals

[Fairman]

Broker platforms that show the wrong number of decimals

A chart can look precise and still be misleading. Prices are shown with the number of decimals the platform chooses, and the feed may carry more precision than the display, or less.

A broker with five-digit quotes might display four on the chart for a cleaner look. The fill occurs at five digits. A trade that appears to close at breakeven on the chart shows a small loss in the history.

Some brokers send a feed with an extra digit that is always zero or always five, effectively giving four-and-a-half digit pricing. It's a way of simulating fractional pips without the real thing.

For scalpers working with sub-pip targets, fake precision is a trap. A 0.3 pip target can't be reliably achieved on a feed that moves in steps of 0.5.

It also affects indicators that use tiny differences, such as measuring tick direction or micro slopes.

Is the last digit evenly distributed in the tick data of the broker used here?