Hi, I’m using Hotforex Mt4. When setting up trailing stop, I noticed that it is in points and not pips. If I want to lose at most $150 per trade for EURUSD, with 1 lot size, how many points should I set up?
I thought that pip and point were different names for the same thing. I did not know for sure, so I had to go look it up. Turns out I was way off. However, according to one page that came up on search…
“Point, tick and pip are terms used to describe price changes in the stock market and other markets. While traders and analysts use all three terms in a similar manner, each is unique as to the degree of change it designates and the markets for which it is used. A point represents the smallest possible price change on the left side of a decimal point, while a tick represents the smallest possible price change on the right side of a decimal point. A pip is similar to a tick, also representing the smallest change to the right of the decimal, but it is endemic to the forex market.”
“A point is the largest price change of the three measurements; it only refers to changes on the left side of the decimal, while the other two include fractional changes on the right. The point is also the most generically used term among traders to describe price changes in their chosen markets. For example, an investor with shares in Company ABC stock might describe a price increase from $125 to $130 as a five point movement rather than a $5 movement.”
So, judging by this, 1 point is $1. But, I think your broker ultimately determines the $ value for their point.
With 1 lot, 1 point = $10, $150 = 15 points. But I am not sure if your broker allow you to set 15 points TS, please check the minimum TS of your broker.
15 pips or 150 points to lose 150 USD on 100 000 EUR/USD position
10$ is a pip value for EUR/USD 1 standard lot. For 150 USD it is 15 pips minus spread.
This is incorrect.
Wow, looks like some need to go back to school.
So bro, 1 point is 1/10th of a pip. A pip is a unit of measurement. The value of a pip depends on the pair you are trading vs your base currency.
Since the EURUSD has been brought up lets look at that. If the USD is you base currency, for 1 lot then, 1 pip is worth $10. Therefor 1 point equals $1 and your Stop loss is placed 150 points (15 pips) from your entry. If the EUR is your base, it currently has a value of $8.92 a pip. Follow the process and now your stop is placed at 168 points (16.8 pips).
My base is AUD. Its pip value is $14.23. So I have a max stop set at 105 points (10.5 pips).
This is something you need to recalculate each and every trade.
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In forex market, 1 pip is equal to $10 when you are trading one standard lot a currency, for example EUR USD. In your case when you want to put a stop loss of $150, it will be at 15 points. But there are few more things you should be taking care of. Like what base currency you are trading in. you should also consult your broker if he gives you access to put stop loss at 15 points or not. And also it depends on what currency your account is in. So make your calculations.
Happy Trading!
A lot of people confusing points with pips.
See post 7 for the correct answer
Azlan, you need to set a stop loss to limit your max losses, and a trailing stop to take over once your trade moves into profit.
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That would be a normal stop loss. I’m order for you to do a framing stop you must already be X amount of pips + into your trade. A trailing stop is more along the lines to use if your away from your screen or sleeping. With a trailing stop you are locking in profit. For example if you are up 40pips and set a 20 pip trailing stop, your stop will automatically move as you trade moves positive. Is 42pips trailing stop would have you lock that in at 22. Then if your trade moves completely against you. That trailing stop will always unless under rare events (SNB Shocker) land you profit.
Points is for stocks, isn’t it?I get used to calculate forex in pips and pipettes cuz you can easily confuse both when forex and stocks are discussed together.
BTW anybody knows where brokers receive commodity quotes from? Coffee, Sugar, Iron Ore want to try them but need to know if there is any delay in quotes.
Sorry for off topic.
The thread starter can ask the Support for a guarantee answer.