Very Basic Questions

Beginner Questions
1

Hi guys, I am totally new to forex - just started reading it up. I have a few noob questions to ask and hope someone out there could be kind enough to help out.

Question 1
Pips being the smallest tick … I read somewhere that any currency pair that has Jap Yen in it has one pip equivalent to 2 decimal places.

why is it that the USD/JPY has movement in ONE decimal place…
example: 11164 - 11164.5 <-- Isnt one pip supposed to be the SMALLEST movement?

Question 2
People have been telling me in forex pairs, you buy one = you sell the other…What do u mean by this?

Taking USD/JPY as example…
If the offer is 11165…that means I am buying 11165 Yen right? Using 100 USD?

I am quite confused with the trading of FX…can anyone help?

2

I suggest you read through the free babypips school attached to these forums. It will give you everything you need to get started

3

pipbull is right. The first lesson in the school answers both of your questions.

School of Pipsology - - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

4

Hey guys thanks for the link! Ill try to graduate…lol

5

Er guys, the lesson doesnt explain why USD / JPY has a decimal place =p its still 1 pip = 2 decimal but the price shows 11170.5

6

Try looking at other brokers… USD/JPY usually offers for eg 112.34 instead of 1123.4.

Hope that helps

Best Reg
Chin Liang