Forex pips definition-what are pips

Forex pips definition-what are pipsForex Pips Definition - What are Pips?

By John Russell. Forex Trading Expert

Definition:

The word pips is actually an acronym for percentage in point, sometimes also called a price interest point. If that didnt help you, here is a better explanation that is less technical. Pips represent the smallest movement that a currency pair can make. Typically this is equal to 1 basis point. but not always.

Continue Reading Below

Also, the different in pips between the bid and ask is called the spread (see forex spread ). The spread is basically how your broker makes money since most forex brokers do not collect an official commission.

Real forex trading results with real proof

Real forex trading results with real proofReal Forex Trading RESULTS with REAL PROOF.

Welcome to the proof page - we have all types of proof here for you to see EXACTLY what kind of Pips are being made with Honest Forex Signals. Enjoy!

RUNNING FINAL PIP TOTALS SUMMARY:

2015 YTD: +6,341 Pips

Total Pips for 2014: +5,621 Pips

Total Pips for 2013: +6,021 Pips

Total Pips for 2011: +8,769 Pips

Total Pips for 2010: +7,138 Pips

Example Only 2 Standard Contracts ($20 a Pip): $776,080 .00

% Gains are completely variable as our members trade all different lot sizes based on their own aggressive or conservative money/risk management strategy.

Most active trading times in forex

Most active trading times in forexMost Active Trading Times in Forex

When is the Forex Market Open?

Though the forex market is open 24 hours a day, there are specific times when the market is faster moving, and it’s easier to make money. There are three main time zones for trading – New York, London and Tokyo. Two sessions are usually always overlapping. In terms of Eastern Standard Time, New York is open from 9am to 5 pm, London is open from 3 am to 12 pm, and Tokyo is open from 7pm to 4 am. So, naturally, the busiest times in the market are from 3 to 4am, and then from 8am to 12 pm, because two markets are overlapping. And, since London overlaps with both Tokyo and New York at some point, it usually has the busiest session.

What is the Best Time to Trade?

The middle of the week is also usually the busiest time in terms of trading. Tuesday and Wednesday shows much more movement and activity than the beginning or end of the week. Friday is generally the slowest day, when things calm down as soon as the London session closes. Sundays and Holidays are generally dead as well, and it’s unadvised to do lots of trading then.

Most Active Currency Pairs

London Session (3am to 12pm ET)

GBP/CHF - average range 145 pips

GBP/JPY - average range 140 pips

USD/CHF - average range 115 pips

GBP/USD - average range 110 pips

USD/CAD - average range 90 pips

EUR/USD - average range 80 pips

USD/JPY - average range 75 pips

New York Session (9am to 5pm ET)

GBP/CHF - average range 130 pips

GBP/JPY - average range120 pips

USD/CHF - average range 110 pips

GBP/USD - average range 90 pips

USD/CAD - average range 80 pips

EUR/USD - average range 75 pips

Tokyo Session ( 7pm to 4am ET)

GBP/JPY - average range 110 pips

GBP/CHF - average range 90 pips

USD/JPY - average range 75 pips

USD/CHF - average range 65 pips

GBP/USD - average range 60 pips

AUD/JPY - average range 55 pips

Forex trailing stop loss strategy

Forex trailing stop loss strategyForex Trailing Stop Loss Strategy

In today forex faq, we are talking about stop loss and below is the question from one of our fellow traders.

Do you think trailing stops are good for short term intra-day trades?

In case some of you do not know what exactly trailing stop loss is, let me spend some time to go through this. I bet you guys have heard of stop loss and I hope all of you have been using it in your trading so far.

When we are using stop loss, we are actually fixing it to a particular value. As for trailing stop loss, it is a variable quantity that will move as your price continues to move in your favour.

For example, you place a target profit at 100 pips. Alternatively, you can place a trailing stop loss at the 100 pips value and then set it at 20 pips. What happens later is when the price hits your target of 100 pips; the trailing stop loss will be activated.

If the price retraces back 20 pips, you will be stopped out which means that your profit will be 80 pips instead. However if the price continues to move in your favour and hit example 150 pips, your stop loss will now be raised to the 130 pips level which means that you are now making additional 30 pips as compared to your original target of 100 pips.

If the price moves to 200 pips, your stop loss will now be at the 180 pips level. If the price retraces back to the 180 pips level, you will be stopped out but you are making additional 80 pips.

Now let us come back to the question above. Trailing stop loss is only effective if you are talking about setting it at 20 and above pips. If your trading method can lock about 80 pips and above, I will suggest you to use trailing stop loss.

If you are simply scalping the market for 15 to 20 pips, it will not be that effective. However you can give it a try for one month to see if you are making more money with trailing stop loss or not.

Above is simply my personal opinion and for those of you who has the experience of using trailing stop loss, do feel free to give your comment below as it will be valuable to others here in this community.

Number of pip vs lot sizes

Number of pip vs lot sizesNumber of Pip Vs Lot Sizes

A lot of forex robots boast its number of pips it can make as the basis of the how efficient their product is. It can be a basis of how well you can do to in trading but in reality, its not really not the number of pips a trader can make money. Its the lot sizes that you trade that really matter.

You can make a 4000 pips a day but it is not a basis of your winning. Even if you get a few pips a day but still you can receive a big return because of the size of their lots. Some even aim for a 15 pips a day with no less than 65% win ratio. Just make sure that you have your money management spreadsheet.

Click Here to Download A GREAT Trading Tool and Strategy For FREE

Double zero price action forex trading strategy

Double zero price action forex trading strategyDouble Zero Price Action Forex Trading Strategy

The double zero forex strategy uses important psychological price levels to enter trades. The strategy is extremely easy to understand and can be applied on any currency pair with moderate volatility such as the usd/yen, euro/dollar, aud/usd, usd/chf,

Download link:

Forex Indicators:

100 EMA (100 period exponential moving average)

Double Zero Forex Strategy Long Trading Example

How it works?

Is the trend up? Go long 15 pips before 00 levels and close the trade 40 pips above 00 levels. Is the trend down? Go short 15 pips before 00 levels and close the trade 40 pips below 00 levels.

I. For long trades

Price is trading above EMA 100

Go long 15 pips before the double zero level.

Take profit 40 pips above the double zero level

Price is trading below EMA 100

Go short 15 pips before the double zero level.

Take profit 40 pips below the double zero level

Risk To Reward

The risk per trade is always 25 pips while profit targets are 55 pips. So, risk-to-reward ratio is 2.2.

Pips and profits

Pips and profitsPips and Profits

What is a Pip?

When you are into weightlifting, the common lingo of performance is pounds:

"I bench pressed 150 pounds today."

When you are into forex. the common lingo of performance is pips.

"I made 150 pips profit on my last trade" or "My trade was stopped out today and I lost 85 pips."

Ok, so what is a pip?

Pip is short for "percentage in point" or "price interest point," and it is the smallest incremental price move that a currency pair can make. It's the last decimal point in exchange rates or currency pairs . Depending on context, this is normally one basis point 0.0001 in the case of EUR/USD, GBD/USD, USD/CHF and .01 in the case of USD/JPY .

It is easy to see with examples.

Here is a 4-digit broker example:

Note: With 4 digit brokers, this last decimal point is 0.0001 for most currency pairs, and 0.01 for Yen based currency pairs. The spread is 2 pips (1.3504-1.3502=2) on this Admiral Markets demo. If the EUR/USD moves from 1.3502 to 1.3503, it would have moved ONE PIP.

Trade Sample on EUR/USD:

James de wet-forex precision scalping

James de wet-forex precision scalpingJames De Wet - Forex Precision Scalping

James De Wet - Forex Precision Scalping

16xDVDRip | MP4/AVC,

207 kb/s | 640x480 | Duration: 06:58:57 | English: AAC, 54 kb/s (2 ch) | 755 MB

Genre . Trading

This Precision Forex Scalping System has been developed by James de Wet from South Africa. As said before many forex scalping systems use a wide stop loss something like 30-50 pips. Imagine losing 30-50 pips while you are looking for making only a few pips per trade.

This Precision Forex Scalping System uses a very tight stop loss of 10-12 pips and can make upto 30-40 pips in one hour on any currency pair any time of the day or night. This makes this scalping system really interesting. It can grow your capital by almost 80% each month with a very low risk of 10-12 pips per trade.

Best forex trading platform for australian traders

Best forex trading platform for australian tradersBest Forex Trading Platform For Australian Traders

Currency trading for many Australians is a daunting investment strategy due to the introduction of new concepts from pips, leverage and forex graphs.

The right forex platform is the key to making smart currency trades and ensuring they are processed at the fastest speed.

From 0.1 Pips 500:1 70 $200

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From 0.8 Pips 500:1 37 $250

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Jan6,2009trading eur

Jan6,2009trading eurJan 6, 2009 Trading EUR/USD Strategy

Yesterday the trade went exactly as planned. I entered 3 lots at 1.3800 and on the first lot I set a limit of 55 pips to get a quick profit. The price dropped right through that like a hot knife through butter. My next lot I had a limit of 100 pips the price dropped through that quite easily as well. The third lot I let ride, the position is still open the stop right now is 1.3799 I have it set at +1 pips with a 210 pip trailing stop.

1 lot +55

1 lot +100

1 lot still open right now locked in at +1

Total +156 pips and more to come.

200pips per day is possible!

200pips per day is possible!200 Pips per Day IS Possible!

Phoenix Trading Strategies continues to show, trading LIVE, that it IS POSSIBLE to make 200 pips (or more) per day trading when you have the right tools and training.

We will post the video replay and results from our last LIVE Trading session below. But, first, we want to remind you that we have another FREE class tomorrow for Non-Farm Payrol l.

Click here to join our FREE Non-Farm Payroll Trading Session.

What: LIVE Trading Session

When: Friday, April 3rd 9:00am Eastern

More about our last live trading session:

London US Session Video

If you were not able to make it, this was a very exciting session! Once again, Ricardo demonstrated how powerful the Phoenix Trading Strategies are in identifying precise entries.

Trading Forex Results for London Session

Trading Forex Results US Session

Here is a summary of our trades:

GBP/USD Sold 1 1.4861 Bought 1 1.4803

Result: 57 pips ($570.00)

GBP/JPY Sold 1 177.66 Bought 1 177.19

Result: 47 pips ($392.45)

GBP/NZD Sold 1 1.9849 Bought 1 1.9816

Result: 33 pips ($247.17)

GBP/AUD Sold 1 1.9567 Bought 1 1.9559

Result: 8 pips ($60.56)

_______________________________

Total 145 pips ($1270.18)

As a bonus to the session, Ricardo also traded the US Session right before the release of US Trade Balance figures.

GBP/USD Sold 1 1.4831 Bought 1 1.4791

Result: 41 pips ($410.00)

EUR/USD Sold 1 1.0823 Bought 1 1.0813

Result: 10 pips ($100.00)

USD/CHF Bought 1 0.9600 Sold 1 0.9627

Result: 27 pips ($290.82)

USD/JPY Bought 1 119.60 Sold 1 119.80

Result: 20 pips ($167.20)

_______________________________

Thread how many pips per day or week

Thread how many pips per day or weekThread: how many pips per day or week

Join Date Jul 2011 Posts 91

how many pips per day or week

hi. how many pips per day or week is ideal. of course this is important, as one doesn't want to be leveraging with several lot sizes, because bad trade with several lot can cost a fortune.

so a good balance is necessary i feel. i think this is the only business where you can make a living out of very small movements or 'pips' with decent leverage required.

of course those ppl targeting hundreds of pips weekly, thats just unrealistic. to do so means you need to pick tops and bottoms. and of course there will be loser trades cutting into your pippage.

so i was thinking, somewhere between 80-100 pips per week is the required amount and some sort of consistency between the weeks is important. eg. not winning 200 pip one week, and nothing for the next 2 weeks. thats just not that consistent. 100 pip one week, 50 pip next. 60 pip, thats what we want?

$5/pip thats $400/week. assume 45 trading weeks, thats about $18k income/annum. solid, very little tax on that. thats realistic imo, for first 6-12 months, then u can step it up after some experience. think of it like a university degree which is several years but costs u money. once something around this figure achieved, then step it up.

my style. scalping + short term day trading. only 1,5,15,30 min charts. forget the rest. occasional hold of position with use of trailing stop. below is one system i am planning to use which is decent i found

Attached Images

The_trading_Signal. pdf (983.5 KB, 574 views)

Last edited by Halba; 10-29-2011 at 12:39 AM.

Thread early bird breakout system

Thread early bird breakout systemThread: Early bird Breakout System

Join Date Dec 2006 Posts 10

Early bird Breakout System

i came across this and was wondering if anyone can code this for the marketscope and allow real trades

Trading setup:

Time frame: 1 hour.

Currency pair: preferred but not limited to EUR/USD and GBP/USD.

This Forex breakout system uses no indicators.

At 5:00 am EST set 2 entry orders: buy order - above the highest high +5 pips, sell order - below the lowest low and -5 pips. Set initial profit target to +90 pips for EUR/USD and +140 pips for GBP/USD - both targets are way too high if to consider that daily range average for EUR/USD is only 110-120 pips and daily range average for GBP/USD is 180-200 pips.

If those targets get hit - very good! However, our profits will be determined mainly by the time factor instead of a fixed amount of pips. So, we close all open positions at 12:59 EST (1:00 pm EST) and cancel all remaining orders. The next trading opportunity - only next day at 5:00 am EST.

Best forex broker australia2015comparison

Best forex broker australia2015comparisonBest Forex Broker Australia 2015 Comparison

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50pips aday-forex strategy

50pips aday-forex strategy50 Pips a Day Forex Strategy

If you want to gain 50 Pips a Day then this new Forex strategy could be what gets you that fortune. I am not 100% sure that it will but I will look over the details of this Forex day trading strategy and let you know all the details.

Tagline: Using what is probably the worlds simplest Forex trading strategy how much could you make just grabbing 50 pips every day?

Type of system: Manual Trading

Price: $27.00

The 50 pips a day system provides you with a strict set of rules that you have to follow. The strategy ensures that you only enter a trade at the lowest possible risk. Trading pullbacks is the core of their strategy with very low stoplosses on their trades.

Lets go over what this system offers:

A proven profitable strategy (doesnt everybody say that though).

50 pips a day Explained step by step in detail.

Always using low risk entries.

There is a lot more, really all just promotion. Nothing that really gives us any details on how this 50 pips a day is going to perform. Also, there is a lack of results on the page which is quite annoying and often with most manual trading systems. I guess this is because even if you provide results there is no way to prove their actual validity.