Understanding Forex Pips

By Bart Icles

A Pip is the term for Percentage In Point or Price Interest Point. It is the smallest measurement for the smallest value (price) change of a currency. This term is one of the most important one among many in Forex currency trading, and should be properly understood by any new Forex trader.

Since transactions in Forex involve very large sums of currency and Forex spreads are usually very small, currency pairs are quoted to the fourth decimal place to be accurate. This is what is known as a Pip, or the smallest change of a currency pair. Take for example the currency pair of USD/EUR, quoted at 1.2345 and changes to 1.2346, the change in Pip would be 1. And if it changes from 1.2345 to 1.2305, the corresponding Pip change would be 40 Pips. Presently, there are 6 widely-traded currency pairs or called the majors, which are the following:

* EUR/USD, also called the 'EURO" * GBP/USD, also called the "CABLE" * USD/CHF, also called the "SWISSIE" * USD/JPY, also called the "NINJA" * USD/CAD, also called the "LOONIE", or "BEAVER" * AUD/USD, also called the "AUSSIE" *

The EUR/USD is the most traded major by an average of 100 Pips a day.

Profits and losses in Forex use the Pip as an accurate means of measurement, but the Pip for a USD/JPY pair has a different value compared to the Pip for USD/CAD, as it is set to the 2nd decimal place since it's value is smaller comparable to a cent/hundredth of other major currencies.

If you trade the currency pair of USD/JPY at 110.95 and moves to 111.0, it gained 5 Pips. With a quote of 77.48 that changed to 77.53 would mean a 5 Pip increase. If it were the USD/CAD pair while at 1.0234, then changes to 1.0224, 10 Pips would have been lost. Trading with the AUD/USD with an exchange quote of 1.9876, the Pip equivalent is .0001, as it set by market makers at 4 decimal places.

So, in Forex trading "30 Pips" would mean thirty units of value in trading. Since individual currencies have different quotes in terms of Pips, it's important to take note of such differences so as not to get confused in your trading. Dealing with large sums might seem daunting at times, but will get easier gradually as you begin to get acquainted with Forex trading as time passes.

In order not to get confused with the quotes, most currency paired with the USD are placed at 4 decimal places or .0001, while the yen is place at 2 decimal places or .01. Keeping this information on Forex Pips at all times during your trading can greatly help. - 23199

About the Author:

We love forex trading and we love to teach how to use the platform properly and money management skills in addition to our forex strategy to help you succeed. Come learn more about our free forex trading course.

3 Easy Ways To Find Out How To Decrease Your Car Insurance Rates

By Adam Lecan

There are a number of things that you can do to lower your car insurance rates and help you understand how car insurance works. Knowing how to lower your car insurance rates will help you save a lot of money throughout your life. So here are three easy ways to save on auto insurance.

The simplest method to save on any insurance policy is to shop around. Whats best about this scheme is, this can be done in less than five minutes by simply completing an online quote form. Regardless of your credit rating, driving history, or age, you can avail the best deal by comparing the car insurance rates of various companies.

The next best thing to secure a car insurance is by driving safely. If you really want to save a chunk of cash, then you ought to obey traffic rules and get rid of speeding tickets. Your driving history is likely the greatest determinant of car insurance companies in computing your premium. So be wary, and keep a clean driving record.

And Lastly, anyone can save money on their car insurance by increasing their premium. The more you are willing to pay out of your pocket means that's less money the car insurance company will have to pay when you submit a claim. Again, anyone can qualify for this type of discount. Of course, you have to be able to afford your deductible if an accident does occur.

Another good advice to save on your car insurance is to maintain good credit. A better credit score you have will decrease your car insurance rate. The insurance companies notice your sense of responsibility and consider this in computing for your rate. If you have awful credit, you still have a chance to benefit from the discount on car insurance by merely building up your credit. It will take time but it will be worth it. Your total rates decrease accordingly with a good credit rating.

If you follow these simple steps for reducing your car insurance rates, you will end of saving thousands of dollars throughout your life. If you don't follow these tactics above, then plan on paying higher rates for car insurance. These tips are easy to do so why not use them to save money. There are other factors to consider also when looking at your car insurance rates, but this is just a short guide. - 23199

About the Author:

Your next step, to answer the question how does car insurance work head over to the how car insurance works website for more car insurance tips and how to get the best rates.

Trading The Breakout (Part II)

By Ahmad Hassam

When prices move out of a price range, then back into the price range and then breaks out of the level again, stopping both breakout traders and faders at least once, whipsaw takes place. When there is a lack of momentum or the breakout is small and weak, a whipsaw breakout usually occurs.

Reasonably placed stops can help preserve your capital when the price breakout does not go your way. Some times the price action is so choppy that it is better to stay out of the market. Breakouts all carry some risk of failure.

How do you know if a breakout is going to reverse the current trend? Successful trading of a reversal breakout obviously means massive profits in the shortest possible time. However, things are not that simple as they seem on the surface.

You should look out for certain reversal chart patterns that tend to serve as harbingers of a trend change. If you spot these chart formations in daily or weekly charts, there is a high chance that a reversal may be in the works. Examples of such patterns include head and shoulder, double top, double bottom, triple top, triple bottom etc.

You can also make use of the momentum indicators to tell you if a trend is nearing its end in addition to looking for these chart patterns. They help in identifying a trend reversal before time. Momentum indicators also known as oscillators are leading indicators.

MACD consists of three exponential moving averages (EMA). The MACD line is the difference between the 12 period EMA and 26 periods EMA. Usually a signal line consisting of 9 period EMA is plotted together with the MACD line. Moving Average Convergence Divergence (MACD) is one of the simplest, yet most dependable indicators for a trader.

A better visualization of the MACD is in the form of a histogram. A bullish signal is given when MACD line crosses above its signal line. A bearish signal occurs when the MACD line crosses below its signal line.

The MACD histogram tracks the speed of the price action. For example, the histogram should become bigger if the price move accelerates with an upside breakout to a higher level as more and more buyers enter the rally.

Each line becoming longer than the previous line as the speed of the price movement accelerates in a quick rally. Each line will become shorter than the previous line. When the price movement decelerates, the histogram will contract on the other hand.

You can detect trend reversal breakout with the help of a MACD divergence signals. When the currency pair rallies to a new high but the MACD histogram declines then a bearish divergence is formed. Read the next part of this article for more. - 23199

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Discover a revolutionary new Forex Robot. Learn Forex Trading!

Forex Trading - High Quality Information Revealed

By Jimmie Harrison

There are so many individuals that come up to us with an understanding that forex trading involves stock and bonds. What is wrong with this picture? Those of you that know anything about forex know that something is wrong when someone associates it with stocks and bonds. Why? Simply because this system does not involves stocks or bond. When you turn to this system, you are going to be trading currencies. That's right, we just implied that you will be trading foreign currencies. Believe it or not, you could make a lot of money off of this. However, before you make money, there are some things you need to learn. You should never just jump into this system not knowing what to do.

The currency you will be trading is very valuable and that is one of the main reasons as to why they have been chosen.

People throughout the world are participating in forex trading. There are so many opportunities through trading that individuals, organizations and firms are benefiting each year. Those benefits are rapidly growing as the process becomes even more popular.

If you are just starting out with these trading features, then you should not worry about anything, because there are many companies that are legitimate. Those companies out there are willing to help you along with the adventure of forex trading. You should not get fooled by those advertisements put out by companies offering high profits with a minimal risk. Why? Because honestly, this is a false statement.

The truth is that if you really want to earn high profits, you will be at high risks. There is no way you can escape from those risks and still be involved with trading. Simply put, a higher rate of profit means that you are at higher risk. Does any of this make sense to you?

You see, no matter what you do, no matter what tips or techniques you take, there will always be high risks involved. Does that make sense? It makes complete since to us, because we have been working with forex trading for many years now.

Keep away from such companies that try to persuade you to trade in the inter-bank market. Why? Because those currency transactions are sitting there, being neglected in a not so stable network of large companies as well as financial institutions.

This means you need to take the time to read over what the experts have to say. During this time, jot down any notes that you think you could use.

As you have decided to turn to forex, you may not be a professional trader right now and you may never be, but having a little bit of common sense will take you a long way. - 23199

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There are several different types of foreign exchange market accounts. Can You Make Money With Forex This is a result in anticipation of information about the new ruling party. These guys range from software programs to manuals.

Forex Trading Instruction & Ivybot Forex Trading Strategy

By John Miller

Staying busy in any business of some sort is really rewarding. Mankind has been involved in this type of enterprise for many years now, in truth, it has been in continuation for as long as any man can hark back to. Look at Adam and Eve trading an apple!

Trading is a exceptionally lovely approach to do commerce. Ancient times, people traded property for other supplies. Later on, various goods were swapped for labor, and reciprocally. Foreign exchange trading is merely one of the numerous types of trading. To begin, foreign exchange trading is merely the trading of the many currencies in and around the world. It offers complete liquidity to most investors; it is also well-known as the least regulated and the leading financial marketplace in civilization.

Even though trading could appear rather uncomplicated, when it comes to forex, it's relatively unique. And if you do not possess suitable information about it, you will lose a whole lot of wealth. Doing the buy and sell like the pros can be absolutely a difficult task, but if you only understand the nuts and bolts & use some advanced forex tools, you can do your trade precisely like them.

There are numerous forex trading classes that you can choose from. You can join a foreign exchange trading group customarily within the classroom or you can achieve it on the web. Any way you choose, you will definitely learn alot and will gain from it after you do the actual trade. Even though it requires extra costs on your part, the total that you will be spending will be doubled or even quadrupled after you do your actual foreign exchange trade.

Trading courses offered to aspiring foreign exchange traders instructs on all forex trading particulars. You can find online universities which present the most up-to-date software & tools employed in foreign exchange trading. Besides that, you will be trained in the difference between equities and forex trading. Professionals utilize various instruments when performing the bona fide trade, and through these training courses, they will be able to help you pick the best possible instrument that you can employ.

You can in fact interact in foreign exchange trading twenty four hours a day and six days a week. Visualize how much money you can bring in in so little time; although this can only be ascertained if you attend foreign exchange trading instruction.

Forex trading entails a great deal of knowledge about the market itself, and if you scarcely have any experience about what to expect, you are in big trouble. Individuals who would like to connect in business obviously want to make a profit, and to achieve that in forex trading, you ought to have a satisfactory grasp of the different aspects of the profession.

It would be intelligent to find a course in physical locations so that you can get the best specialized and across-the-board educational experience. Make sure if they also present lesson materials to be studied at your residence. The opportunity created by taking the unique courses offered in the marketplace is never-ending, and any trader can substantially benefit from it.

Foreign exchange trading classes enables you to have training with real quotes and data. You will be educated in the proper skills in risk management, and how you will be able to protect your funds. You will learn how to create your very own business plan, and your teacher's comments about your work will make a difference in improving your performance the next occasion you make a new plan.

You can ask your associates and colleagues who are also into foreign exchange trading if they know any foreign exchange trading course that is of first-class instruction quality. Or you can also do some searches on the internet in case you would like to listen to classes on the internet. - 23199

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It is highly recommended that you use forex software on the market like Fap Turbo and Ivy Bot! Software like this make it easier to find the right pips for trading foreign exchange!