Knowledge of Forex PIPs is extremely important for calculating profit and loss in Forex online trading. Forex PIP is the abbreviation for percentage in point. It is the smallest unit of percentage increase or decrease in price for the currency. Last decimal point in exchange value of currency pair is signified as pip. If you bought USD (United States Dollar) for CHF (Swiss Frank) at 1.2475 and sold it for 1.2489, then you made 14 pips. However, the PIPs system is not same in case of USD/JPY. The decimals in ratio of USD/JPY are of only two points.
In Forex trading, the currency prices are always available in pairs. More active pairs of currencies have less difference of bid/ask rate which reduces spread of pips. Active currencies are the currencies frequently sold and bought. There are no charges or spreads in buying and selling of currency, but the transactions that take place online are charged. Thus, it is important to consider pips before calculating profits. Thus, having proper knowledge of Forex PIPs will enhance chances of earning better profits.
Pips are never the same or stable. They keep on changing as per the market fluctuations. Higher pip rate means better profits. The best way to trade on higher Forex PIPs is by buying currency at low quote rates and selling currency when quotes are highest.
It is not possible to obtain Forex PIPs rate of every currency. Therefore, taking assistance of Forex brokers is helpful, as they can easily obtain the information on highest pips in Forex market.
Forex and Forex PIPs operate on basis of contract or lot. Forex contract size ranges from $100, 000 to $ 1000. There are three types of lots Standard, Mini and Micro. Their respective sizes are:
Forex Contract Size:
Standard contract = $ 100,000
Mini contract = $ 10, 000
Micro contract = $ 1, 000
Trading with the help of Forex PIPs is made easy with the PIPs calculators available online. These calculators are effective tools to calculate pip values. The pip values can range from 2 to 12.
Forex trading is mainly done in standard lot size. However, due to online software and assistance provided by web sites, many individuals have started trading in mini lot size.
Having good knowledge of pips is extremely important, because it acts as base for closing your trading and calculating profits earned in a day.
In Forex trading, the currency prices are always available in pairs. More active pairs of currencies have less difference of bid/ask rate which reduces spread of pips. Active currencies are the currencies frequently sold and bought. There are no charges or spreads in buying and selling of currency, but the transactions that take place online are charged. Thus, it is important to consider pips before calculating profits. Thus, having proper knowledge of Forex PIPs will enhance chances of earning better profits.
Pips are never the same or stable. They keep on changing as per the market fluctuations. Higher pip rate means better profits. The best way to trade on higher Forex PIPs is by buying currency at low quote rates and selling currency when quotes are highest.
It is not possible to obtain Forex PIPs rate of every currency. Therefore, taking assistance of Forex brokers is helpful, as they can easily obtain the information on highest pips in Forex market.
Forex and Forex PIPs operate on basis of contract or lot. Forex contract size ranges from $100, 000 to $ 1000. There are three types of lots Standard, Mini and Micro. Their respective sizes are:
Forex Contract Size:
Standard contract = $ 100,000
Mini contract = $ 10, 000
Micro contract = $ 1, 000
Trading with the help of Forex PIPs is made easy with the PIPs calculators available online. These calculators are effective tools to calculate pip values. The pip values can range from 2 to 12.
Forex trading is mainly done in standard lot size. However, due to online software and assistance provided by web sites, many individuals have started trading in mini lot size.
Having good knowledge of pips is extremely important, because it acts as base for closing your trading and calculating profits earned in a day.
Frank is a Forex Enthusiastic Trader.
For more Great Tips and Tricks on Forex PIPs visit http://ForexControlCenterOnline.com, you can also get your self a FREE eBook.
For more Great Tips and Tricks on Forex PIPs visit http://ForexControlCenterOnline.com, you can also get your self a FREE eBook.
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