0.01 cents per pip worth it?

Beginner Questions
1

I want to start in the world of Forex, but I have a limited budget because most of my capital is in my stockbroker account and I am not going to move my money to my Forex broker because I’m not…dumb. So I’ve seen on micro accounts that it’s 0.10 cents per pip with 1 lot (1000 units) splitting this lot into smaller pieces, 0.1 lot is equal to 100 units with a pip value of 0.01 cents. Is it even worth it to go through all the hassle just to have 0.01 cents per pip?

2

You either have your decimal in the wrong place - OR - You’re confusing “PipS” with “Points” - but your arithmetic is wrong !

3

@TheHiri

yeah… What @Falstaff said
Check your math mate

Just to put you on the right path

THE CURRENT PRICE OF EURUSD IS

1.24073

this means
the price IN PIPS is 1.2407

so if price were to move from 1.2407 to 1.2408 this would be 1 pip
if price were to move from 1.24073 to 1.2408 this would be 7 POINTS or PIPPETTES
if price were to move from 1.24073 to 124083 this would be 10 POINTS or 1 PIP

so…

10 PIPPETTES / POINTS = 1 Pip

1.0 Lot = $10 Per pip
0.10 Lots = $1 Per pip
0.01 Lots = 10cents per pip

NOW THIS IS ONLY FOR CURRENCY though, it’s different on indexes

so Look at your math ok, something is not right

4

I get what you are saying. For 0.1 micro lots (100units of the base currency), each pip would be worth 1 cent of the counter currency. For a trade worth 100 eur on eurusd each pip would be worth 0.01 dollars or 1 cent. I suggest you start trading with micro lots(10 cents per pip). This would be much better for a beginner in terms of risk management.

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5

Unless your trading capabilities are proven, nothing is worth per pip. No matter how big your capital is. This thought should come only after you get a well defined trading strategy. If you know how to make money in forex, money is not a problem at all. You would find many people to invest.

6

this is a very good answer. it’s true… unless you prove you can trade, nothing will work long term,
but a proven trader can make money starting from 0.01 lots… common sense

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7

If someone has low capital amount then he needs to trade with smaller lot size and do trade at long term basis. If he has a good experience and strategy then he can grow up slowly. This market is diamond for wise people.