Wednesday, November 08, 2006
Forex Day Trading System - Answering a question
Forex Day Trading System - How much does a pip corresponds to!!??
One of a visitor has asked me what is a pip and how much money does it mean. So Lets focus on that to learn forex trading online
A pip is the last decimal place of a forex quote. The pip, is how a profit or loss is measured. For example if EUR/USD = 1.2506, it means that 1 EUR = 1.2506$.
As each currency has its own value, it is necessary to calculate the value of a pip for that particular currency. In major/minor currency pairs (which involve USD), a sample calculation
of a pip would be -
Example - EUR/USD is 1.2506 or 1 USD = 0.7996
The lowst value is 0.0001
So, 1 pip = 0.0001/0.7996
which when multiplied by contract size will give the value of 1 pip movement as $1 for a mini account and $10 for a standard account..When using a forex day trading system, averge profit is of 20-25 pips per trade.
Knowing value of 1 pip movement is important when making trade since for some currency pairs 1 pip = 8.9$ on standard account (e.g. USD/CAD)
Thats all in today's session on forex day trading system..keep visiting to learn forex trading online
One of a visitor has asked me what is a pip and how much money does it mean. So Lets focus on that to learn forex trading online
A pip is the last decimal place of a forex quote. The pip, is how a profit or loss is measured. For example if EUR/USD = 1.2506, it means that 1 EUR = 1.2506$.
As each currency has its own value, it is necessary to calculate the value of a pip for that particular currency. In major/minor currency pairs (which involve USD), a sample calculation
of a pip would be -
Example - EUR/USD is 1.2506 or 1 USD = 0.7996
The lowst value is 0.0001
So, 1 pip = 0.0001/0.7996
which when multiplied by contract size will give the value of 1 pip movement as $1 for a mini account and $10 for a standard account..When using a forex day trading system, averge profit is of 20-25 pips per trade.
Knowing value of 1 pip movement is important when making trade since for some currency pairs 1 pip = 8.9$ on standard account (e.g. USD/CAD)
Thats all in today's session on forex day trading system..keep visiting to learn forex trading online
