Newb Question

Beginner Questions
1

Hi, i’m a Forex n00b.
I’ve been kicking the idea around about this for a while, but finally see a good oppurtunity to do this now that I have found this site. I am in 2nd grade BTW :slight_smile:

As I learn and observe and practice, I am bound to have tons of questions, many of them will be basic Forex 101 stuff, so pelase be patient with me :smiley:

So onto my 1st question…

  • I was watching EUR/USD today for an 90 min. interval.
  • EUR gained to 205 pips
  • I would buy US100k lot in EUR @ 1.34025 and sell @ 1.34230.
  1. Would I caculate a pip value (.0000746) based on the buy price of 1.34025?
  2. I did some math and came to a figure of what the gain on this would be in USD$. It seems to be … US$2050? Is this correct math?

Thanks for the time !

Also, what is a GOOD practice s/w to use?
What is recommended?

2

pips for EUR/USD are measured from the ten thousandths place so its not 200 pips but 20 pips. So the trade you suggested would have given you 20.5 pips.

At 100k lots pip value would be $10 per pip.

Your math is right just that you counted the pips wrong.

The trade would have resulted in a profit of $205.

3

Just to further clarify, the 5th decimal place out in EUR/USD represents pipettes - 10ths of a pip.

4

Ok i see. Thanks.

5

Those pipettes drive me crazy when I Started too :slight_smile: then I found out how to disable seeing them. I use Oanda for both a practice (game) and live account. You can play the game as long as you want since it never expires. You can also go into the options to turn off pipettes if you choose.

https://fxtrade.oanda.com/

Topgun

6

Thanks for that info topgun… I didn’t know you could turn them off on oanda

They dont really bother me but its nice to know you have the option.

7

thanks guys.

I’m gonna try your suggestion topgun and open an account there.

Enough math to do already w/ out having to worry about pipettes!!