Really newbie question here

Hi everyone, I am real new here so go easy on me. I am a new internet marketer who decided to promote a forex product and decided to learn about what I was promoting. I have a demo account right now and have been reading on the baby pips school and pretty much had a real basic question for everybody.

If I thought EURUSD was going to increase in value I would want to go long on EURUSD? If i did that would I make money if I bought while it was at 1.28520 and then sold while it was at 1.29860 I would make 1340 pips, correct?

And if I thought it was going to decrease in value I would want to go short and then I would make money if it dropped back down right?

Thanks…

Nilzar

Nilzar-

You would have made 134 pips in profit. PIPS are percentage in Point, which means that it is 1/100 of 1% change in value of the currency. To not make the things complicated, whatever is the price change, for example, if EUR/USD moved from 1.29000 to 1.30000, then you have a 1.30000-1.29000/.0001 = 100 Pips is profit. Simple just divide by .0001 (For EUR/USD in this case, but you can figure out 1/100 of 1% for other pairs)

And yes you would have made profit had you shorted.

Welcome to trading!