Duh? ( Dumb question coming )

Hello all. First I want to say that the School is excellent training - a real
gem of a thing in these shark-infested waters! Can someone help me this
question from Pre-School: what is the point of dividing the pip by the exchange rate? I just can’t see what that’s doing.:confused:

That is just to find the pip value (how much each is worth). Some currencies pip values change (EUR/JPY, USD/JPY, EUR/GBP - to name a few.). But all in all you could just find them on the web. So, basically when you enter a trade and take for example EUR/JPY. If you buy it, and it goes up, the pip value continually decreases as you make money (of course not by to much). But if you sell it and it goes down, the pip value continually increases by how far it goes down. So the way it increases or decreases is based on how much the currency’s price moves. Hope that helps. I know it’s confusing when you start out with anything. If your still unsure just post again. Have a good one!

O.K., thanks for the reply Shadow. I’ve done the maths the long way and
the penny’s dropped. I could ask some more on this, but I think I’ll just
think it through some more before I embarass myself.:o

Eh, ask as many questions as you can, don’t worry about feeling silly. Believe me, That’s one of the best ways to learn, next to experience and trying to prove something wrong. Anyway if you have any more questions, just post, even if it’s alot. The forum’s here to help, besides, you can even edit your comment once you’ve already posted, so if it was really bad, you can always replace it with something else or delete it:D. Don’t worry I’ve made fool out of myself on here if people have noticed it or not.:o Have a good one eh!