Pips is pips
The pip is the measurement of one tick in any one currency pair. For example, in Euro/USD pair, a movement from 1.3000 to 1.3010 equals 10 pips. How much is a pip worth? That depends on what lot size you are trading with, but if you are trading with one standard lot, 10 pips equals $100. Not all currency pairs are worth the same amount per pip, so you should familiarize yourself with the different currency pairs and their pip amounts. There are many places to learn about the ins and outs of pips and lot sizes, one good website to learn from is http://www.babypips.com/. The trick of trading forex is simple: get as many pips out of the market as you can on a consistent basis. Sounds easy! While trading your demo account you will start to learn what causes a particular currency to move up, and what causes that same currency to move down. There are many forces moving currency pairs at all different times of the day. A great way to really learn about the forex market is to become an expert in just one currency pair. Like Euro/USD. If you concentrate on one pair, one chart, you will have an easier time learning how to catch those pesky pips and keep those pips, trade after trade.
February 1st, 2008 at 6:55 pm
Hi - just wanted to say good design and blog - cu Ronny R.
February 14th, 2008 at 6:31 pm
I found your blog via Google while searching for forex demo and your post regarding Pips is pips looks very interesting to me. All I can say is WOW! Extremely nice layouts, awesome graphics and great articles. No matter how many times I come here, I am still impressed by the very professional appearance. Congratulations on a job well done.
February 21st, 2008 at 9:06 am
Hi Karan, thanks for the kind words. I love trading forex, can you tell?? I love that even though I have been trading for awhie now, I still learn things everyday about this market. Hope your trading is going well, cheers!