FAP Turbo Automated Trading System and Forex pips Basics
forexautopilotsystem.org - FAP Turbo Automated Trading System and Forex pips Basics - Have you heard someone saying I am up 64 pips today” or, “I received 130 pips on my last trade?” Although this sounds like a lot of money, it would be better if you know what these figures mean, and why is it associated with your trades using FAP Turbo. PIP simply stands for “Percentage in Points” often times, it is referred to as “Points” PIP is the most basic unit of a currency. It is the last decimal point that you can see in every exchange rate. In most cases, 1 PIP is equal to 0.0001. So, if you purchased USD 2.2475 and sold at 1.2589, you made 114 pips. However, you should understand that there are exemptions for this, like the USD/JPY, which has two decimal places. This means that 1 USD/JPY PIP is equals to 0.01. pips are the figures that show you how much you have earned or lost during a trade, and this figure is one of the most important figures that a trader should be familiar with. Even if you are using different currencies, the rate of the PIP stays the same. If your base currency is USD, you will divide the PIP (0.0001) with the exchange rate. Even when you utilize different currency pairs and deal with fluctuating prices, the PIP usually remains the same. To make it simple, the exchange rate for USD/CHF is 1.2489, so it will be 0.0001 / 1.2489 = 0.0000800704. This may seem like a small number, but you need to understand that in Forex trading, small amounts can provide big …
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