I’m from Perth, WA, Australia and like the others in this island i’m new to FX. I have had experience in stocks before though. I just have a few questions i was wondering if people could help me with. Thanks in advance if you can!
Do most brokers come with news feeds or is it required to purchase a subscription to a news feed from another place?
Where can I buy most of these books eg. the one’s stickied in this forum. Are they available in e-book form?
A quick quesiton about pips and mini accounts. I’ve been demoing and was wondering how mini accounts work. I read at the babypip school that mini accounts pay $1/pip/lot. Is that universal? For example:
(a)If I make a $100 account with a leverage of 200:1. I buy one 10k lot of a 1.0000 pair, which will cost me $50. Is it true my used margin is now $50 and my available margin is $50? If I don’t buy a 1.0000 pair, for example AUD/JPY pair (which is 70.00) how much will it cost me?
(b)Then, let’s say the price of my 1.0000 pair drops. If my available margin is $50 then I assume it will need to drop 50 pips ($1/pip) until I get margin called. Is this right?
Do most brokers come with news feeds or is it required to purchase a subscription to a news feed from another place?
yes i think so but it won’t be fast enough if you are trading the news. If you are new to forex I would suggest don’t trade during news times at all.
Where can I buy most of these books eg. the one’s stickied in this forum. Are they available in e-book form?
I get most of my books from amazon and they are very cheap sometimes.
A quick quesiton about pips and mini accounts. I’ve been demoing and was wondering how mini accounts work. I read at the babypip school that mini accounts pay $1/pip/lot. Is that universal? For example:
(a)If I make a $100 account with a leverage of 200:1. I buy one 10k lot of a 1.0000 pair, which will cost me $50. Is it true my used margin is now $50 and my available margin is $50? If I don’t buy a 1.0000 pair, for example AUD/JPY pair (which is 70.00) how much will it cost me?
(b)Then, let’s say the price of my 1.0000 pair drops. If my available margin is $50 then I assume it will need to drop 50 pips ($1/pip) until I get margin called. Is this right?
$1 a pip is not universal but most are at least close to a dollar. If you have $100 you should not be trading mini lots a couple of bad trades will wipe your account out. I use IBFX (i dont know if they are in perth) and you can trade micro lots which are worth .01 (a penny) each. The margin on my account is 200:1 but many times i see it shoot up into the 1000’s to 1. I dont know why ibfx does this but what im saying is it is static and moves. Also spreads are static nothing seems to be fixed in forex and that is another good reason to stay away from trading during major news releases the eur/usd which has a spread of 2 usually can go all the way up to 12.
it’s well worth reading through the babypips school as it explains most of your questions in a really easy to understand manner. Take a look here for an explanation on how to calculate pip value across different currencies Know Your P’s and L’s
Also, don’t confuse leverage and margin, your broker will dictate margin as a percentage and it will differ from broker to broker