OANDA Introduces Fractional Pips to Narrow FX Spreads Further

OANDA is the first company to offer pipettes to FX community

New York, June 25, 2004—OANDA today announced it has introduced fractional
pips or "pipettes" to narrow the trading spreads for many currency pairs
offered on the company’s online trading platform, FXTrade. For the first
time, traders will be able to view and trade on spreads that are quoted to
the fifth decimal point (pipette), making OANDA’s spreads the narrowest in
the industry, and offering traders a less expensive environment for trading
currencies.

Most currency pairs are quoted to the fourth decimal place. For example, the
Euro/U.S. Dollar spread was recently quoted on OANDA’s FXTrade at1.2105/7,
with the spread, or difference, between buyers and sellers being 2 points or
"pips". Now, traders using OANDA’s FXTrade will see spreads quoted to the
fifth decimal place (pipette), allowing EUR/USD spreads of say 1.8 pips,
reducing significantly the difference between the price at which traders can
by and sell a currency pair. Narrower spreads offer clients reduced overall
trading costs and a greater ability to execute complex, and often automated,
trading strategies.

FXTrade is a fully automated trading platform where OANDA acts as the market
maker and allows clients to execute trades in real time. It is derived from
over 18 years of foreign exchange market research and analysis. Key features
of the platform include a user friendly, intuitive front-end trading
interface, fully automated trading, market transparency, instant settlement
and deal confirmation, tight spreads on all major currencies offered, and
the smallest transaction sizes available anywhere. Additionally, users can
open accounts in seven different currencies, and 30 currency pairs are
currently available for trading, including all of the major spots.

"Introducing fractional pips (pipettes) gives us much more flexibility in
setting forex prices on our FXTrade platform, allowing us to narrow spreads
to unprecedented levels," said Michael Stumm, President of OANDA.
"Historically, many traders in the foreign exchange industry have been
required to make decisions based on wide trading spreads and little market
transparency. With tighter spreads and a fully automated trading
environment, OANDA offers FX market participants the best solution for
trading currencies in the industry."

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