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Forex pips indicators

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Forex pips indicators have a major speculative role to play in the foreign exchange market. They refer to the minute increments of a given currency. PIP is an acronym for “percentage in point” and forex rates are expressed up to 4 pips or 4 decimal places. In forex trading, they represent the smallest changes in the currency value. Even a small change in a pip can have a heavy effect on the final value of a particular currency upon its purchase or sale.

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Forex pips indicators

  1. 1. Forex Pips Indicators By James Taylor http://www.FishingForexPips.comCopyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  2. 2. Forex pips indicators have a major speculativerole to play in the foreign exchange market.They refer to the minute increments of a givencurrency. PIP is an acronym for “percentage inpoint” and forex rates are expressed up to 4pips or 4 decimal places. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  3. 3. In forex trading, they represent the smallestchanges in the currency value. Even a smallchange in a pip can have a heavy effect on thefinal value of a particular currency upon itspurchase or sale. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  4. 4. Foreign exchange trading involves variouscurrencies with thousand dollar values, andthe slightest movements in the pip value,whether up or down, can mean big tradinggains or losses. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  5. 5. This is how crucial the role that pips have inthe determination of the cost of a particulartrade. When a currency buyer quotes a bidand the seller asks for the desired price, thespread between the two is minimal. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  6. 6. For currency wholesalers, the spread is usually1 to 2 pips. Brokers, however, will note this upto anywhere from 3 to 20 pips. The amountnoted by the spread will be retained by thedealers as their fees as they do not charge anycommissions for their services. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  7. 7. The job of the dealers is to try to predictmarket movements. If they speculate rightand the spread is exceeded by the pricefluctuations, a profit will be made. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  8. 8. Before getting into actual trading in themarket, neophytes are advised to learn thebasics first such as what the forex markets are,opening up an account with a broker, chartreading, using the forex pips indicators, andunderstanding the various chart patterns. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  9. 9. You can get a lot of information onlineincluding how to design your own tradingsystem and how to test it. It is important for abeginner to get an idea on which currencies tobuy or sell, when to trade them, and whatsignals to use. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  10. 10. A pip can be simply stated as 1/10,000th of theprevailing exchange rate, and the pip value ofa basic currency must be defined. It isbasically how much the pip is worth. Tocompute for the pip value, multiply 1/10,000thof the exchange rate by the lot size. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  11. 11. The pip is the 4th decimal place in theexchange rate quoted. The pip will vary if adifferent currency pair is quoted. Theimportance of pips lies not so much in theaccurate and proper measurements of dollarsand cents but rather in indicating the rise andfall of the foreign exchange values. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  12. 12. When involved in a particular currency trade,the forex trader must try to determine theworth of the interest point of the price bymonitoring and noting how much money isgained or lost for each price interest point thatis gained or lost. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  13. 13. As an investor, it is important that you areable to check the price movements in themarket. It can be achieved by understandinghow forex pips indicators work, and beingable to calculate the value on a particularcurrency. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  14. 14. FREE Forex Strategy To Make Hundreds Of Pips! Free Gift: Fishing Forex Pipss Indicator System [ Worth $197 ]http://www.FishingForexPips.com/Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.

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