Hi, I have just started Pipsology at BabyPIPS. But I am heavily confused with pips.
I opened a few virtual trading accounts at Marketiva, FXCM and IBFX.
I am learning with EUR/USD only.
When I invest $1000 at marketiva, 20 pips profit give me $200. Which is working fine as they have explianed at mymarketiva.com/2006/11/03/calculate-your-profit/(Calculate Your Profit - My Marketiva Forex Blog)
And a $10000 at FXCM investment gives $20 with 20 pips profit. Which is also fine as explained on there own website. ibfx.com/tools/pipcalc.aspx(i forgot the fxcm link so posting IBFX, same)
Now they are doing what they told on there webpages, but from my perspective, i am getting 2 definitions of PIPS!!!
My GOD, I am going crazy.
Please help.
{attached a screenshot of FXCM with 10k investment,vistual, and 17 pips profit, only $17 as profit}
My question is still unanswered.
My problem is with PIPS, and not with account types.
In more simple terms, in Marketiva, I observe 1 pip is (~)1% of profit/loss.
Elsewhere( FXCM, IBFX) 1 PIP is (~)0.01% P/L. Now micro,mini are out of context.
Am i correct?
So, my question, at square 1, is why are two sets of definitions for pip profits/loss.
Thanks for help.
Prabhat
Sorry Dear Phil,
I am not intentional in any ground to prove here. I just wanna learn.
See the simple thing, whatever amount i trade on Marketiva, I get nearly pip percent of that as profit or loss, but on IBFX/FXCM I get PIP/100 percent as P/L.
I am not for proving a point, but just to understand a concept.
In marketiva example, 16 pips give approx 16%(15.95…) of profits but a similar 17 pips in FXCM gives 0.17% pofit.
I know that PIP directly don’t have dollar value.
Have you seen the marketiva page link I have posted? You can have a look for once atleast.
I know you’re just trying to understand the concept. No hard feelings.
I don’t need to go to the Marketiva page, I know exactly what the problem is. You demo account at Marketiva is a standard account, and your demo account at IBFX/FXCM is a mini account.
Your trades at Marketiva are worth 10 times what they are at the other brokers because 1 pip at Marketiva = $10, but 1 pip at IBFX/FXCM = $1.
Again, I suggest you read in the Babypip’s School on the differences between micro, mini, and standard accounts. That should clear up your confusion.
I am still re-reading Pipsology to find for what have i yet not understood.
Ok, I traded 1$ at marketiva, went 10 pips negative and closed the position. I lost 10 cents(It was virtual account).
Your logic doesn’t explain this.
In marketiva, there is no lot concept as such. You enter the amount in cents you want to put on a position. Even 1 cent can be traded. For this testing i put 100, i.e 1 $. And 10 pips got me 10% of LOSS(wow, not for loss but 100 times higher pip values :))
The only thing I can guess in that case is that Marketiva is varying the percentages based on the dollar amount of your position.
I wouldn’t worry too much about it unless you are planning to open a live account with them, which I would highly suggest you don’t. No other broker operates this way.
If you like the idea of no set lot sizes then go with Oanda. It’s the same concept, but they don’t change the math on you at different trading levels.
They don’t seem like a “Crook” company. But, they aren’t a company I would want to trade real accounts with, especially since they LIMIT your trading. So they DO NOT like Short-Term Positions. And they are offshore?
This company has red flags all over it IMO. And the way you adjust your lot size seems mediocre. This company seems to be designed to collect newbies.
i am no fan of marketiva, neither this was any linked to. It was all about pips. And the doubt is clarified. They do provide 100:1 lev, which i didn’t know as of yet.
Secondly, i am a newbie but do have successful research career, now wading in fx :). There are more flowery lesons on marketiva with me, any1 intsed just ask.
Sorry Admins, I didn’t posted any hyperlinks. I just put text which was converted to Hyperlink by your system itself. No warning required dude. You have a great school of pisology but bit rude rules… i am very sorry for you
Word pips (pips), which is used in the terminology of the forex market, and which often can be heard in conversations between traders, is an abbreviation of the English phrase “Percentage in point” (eng. Percentage point). Let’s see what the word means in the context of the forex market. Immediately, we note that otherwise it is also called a point.
A pip or pip in the forex market is the most minimal price change. The exchange rate is measured to the fourth or even to the fifth decimal place. The last digit is the smallest change in the currency pair, which is called a pip.
