Hey! I’m a newbie in here, trading with demo accounts. No experience in trading with real money. Want to ask a question about value of the one pip. The mount of money you get when you sell one. As I know it depends on the money you have, is it so?
For example deposit of $100. Leverage is 1:500. So I wonder how much will cost 1 pip when i start trading. Is it 1 pip = $1? :33:
Thanks!
Pips and Pipettes | How Do You Trade Forex? | Learn Forex Trading I hope, it will help you.
thanks guys!
Pip value depends on the quote currency, if you trade with EUR/USD, each PIP costs 1 USD if you are using 100 Units (1 micro lot) If you trade with for example with USD/JPY each pip cost 1 yen if you are using a micro lot, if the price of that pair is 0.8 for example, each pip will cost 1.25 USD (1/0.8=1.25). In case you wanna try EUR/GBP and its price is 1.2, the pip value of that pair will be in GBP, so if if you wanna know the pip value in USD you only need change GBP to USD, in other words for that pair the pip cost will be the price in GBP/USD. If you wanna try GBP/JPY, almost the same, each pip will be in JPY, so the only thing you need to do in this case is to use the inverse of USD/JPY price (1/USDJPY).