Last-digit clustering in forex quotes

[Amanhasnoname]

If prices were perfectly random at the pipette level, the final digit of each quote would be spread evenly from 0 to 9. In practice, many feeds show a visible skew, with zeros and fives appearing more often than other digits.

Several mechanisms contribute. Liquidity providers round quotes. Aggregators apply markups in whole pipette steps. Algorithms place orders at convenient increments. The result is a pattern that can be seen in a histogram of last digits.

For scalpers, the pattern has two uses. First, it works as a data quality check. A feed with unusually uniform last digits may be synthetic or heavily processed, while a feed with strong clustering reflects specific price-setting habits.

Second, it informs order placement. If prices tend to land on 0 and 5, a limit order at an offset of one pipette may fill more often than one exactly on a favored digit, since the queue at the favored digit is longer.

The effect is small, but it costs nothing to test.

What does the last-digit distribution look like for the pair being traded?