Currency price movement is calculated
the pips (price-point increment).
Daily currency fluctuations are usually
ranges from a few tens of pips until
about a hundred pips more. indeed this
also depends on the currency pair
his money. For GBP / JPY or GBP / CHF
possible movement between beerkisar
200-400 pips in a day. That means the
fluctuations in currency movements on average
less than 2%. From fluctuations in the
less than 2% of the potential profit
can be obtained not by half,
or less than 1%. movement and
profit as small as it can only mean
if the volume of transactions conducted in
is great.
So, in the example transaction 'buy' on
on movement from 1.3425 to 1.3460
actually 'only' 35 pips. but
because the volume of transactions is large enough
(1 lot = 100,000 units) then the value of a pip
for the transaction to be great
($ 10) and the profit obtained also
becomes large ($ 350).
The value of a pip depends
on two things: the volume of transactions and value
counter-currency.
For currencies EUR / USD, countercurrency
is the USD. Then the value of a pip
is 0.0001 USD x volume of transactions.
Thus for 1 lot of EUR / USD
value of 1 pip is 0.0001 USD x 100.000
or 10 USD.
How about a counter-currency is not
USD? Eg 1 lot USD / CHF ...
In this case the counter-currency are
CHF then the value of 1 pip is 0.0001 CHF x
100,000 or 10 CHF.
The problem is, our account is generally in
the form of USD the value of 1 pip of 10 CHF
It must first be converted into USD. and
This does not fix, can change
depending on the exchange rate USD / CHF at
it. If the exchange rate USD / CHF now is
1.1280 then the value of 1 pip of 1 lot
USD / CHF = 10 / 1.1280 or 8.87 USD.
Selasa, 06 Desember 2011
Pip
