Videos uploaded by user “markharrisist”
How to Calculate Pips on FOREX Commissions - Forex Currency Trading
http://tinyurl.com/77aeo5l How to Calculate Pips on FOREX Commissions - Forex Currency Trading How to Calculate Pips on FOREX Commissions The forex industry likes to point out that most forex brokers don't charge commissions. It's true you won't see a commission charge added on when you buy or sell currency. Although there are some exceptions, the fees (or commissions, if you prefer) are built into the pricing system used in forex trading and are based on the difference between bid and ask prices (called the spread). Prices are stated in terms of the "pip," which is the smallest amount a currency exchange rate can change by. 1 Learn how forex prices work. Currencies trade in pairs. The exchange rate tells you how much of one currency is required to buy one unit of the other. For example, if the euro and US dollar are quoted at EUR/USD = 1.2500, you need $1.2500 to buy one euro. The quote is to four decimal places because the pip for the US dollar is $0.0001 (1/100 cent). Forex brokers set their fees in terms of pips. 2 Look at the exchange rate quoted for a currency pair. You will see two prices listed. The bid is the price the broker will pay you for a currency and the ask is the price at which the broker will sell you the currency. Note that the ask is always a few pips higher than the bid. 3 Subtract the bid price from the ask price to find the spread. The forex broker keeps the spread as his fee/commission. For example, suppose you place an order using U.S. dollars to buy euros. If the ask price is $1.2500 and the bid is $1.2496, the difference of four pips is the broker's share. 4 Multiply the spread by the number of units of currency bought (or sold). A standard "lot" of US dollars is $100,000. At EUR/USD = 1.2500 one lot equals 80,000 euros. If the spread is four pips (from Step 3), multiply 80,000 times $0.0004 to find the spread the forex broker keeps (in this example it works out to $32).
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The Stock Market: What Is a PIP? - Share Price History
http://tinyurl.com/77aeo5l The Stock Market: What Is a PIP? - Share Price History The Stock Market: What Is a PIP? The term PIP is associated primarily with the foreign currency exchange -- Forex -- market. Forex and the stock market are different types of investing or trading and novice investors should not confuse the two. There is one circumstance where PIP has a meaning for stock market investors. Stock Symbol PIP is the stock symbol for PharmAthene, Inc., a New York Stock Exchange-traded company. PharmAthene is a biotechnology company specializing in developing defenses against bio-weapon attacks. In February 2011, PIP was trading for about $3.00 per share. The U.S. stock market uses one to four letter identifiers as unique stock symbols for companies trading on the stock exchanges. Percentage in Point In Forex trading, PIP stands for percentage in point. A PIP is the smallest amount a currency value can change in relation to another currency. For most currencies, a PIP is one unit of the fourth decimal point. For currency pairs that are calculated in terms of the U.S. dollar, one PIP is 1/100th of a cent. For example, if the euro/U.S. dollar currency pair is trading at $1.3701, the 1 is the PIP level. If the euro gains a PIP, the new exchange rate is $1.3702. Forex Traders and PIPs Forex traders determine the gain or loss on a trade in PIPs. Trading software list the trades results in positive or negative PIPs. The dollar value of a PIP is determined by the size of the trading unit. If the trades are in $100,000 units, each PIP is worth $10. If the trading unit is $10,000; PIPs are worth $1.00 each. The daily price change in currencies is often less than one cent or 100 PIPs per day. Making Money with Pips To put up $100,000 to make $10 per PIP would not make sense for a trader. Forex traders use leverage to boost returns on the money invested. In the U.S., the maximum leverage for Forex is 50 to 1. To trade a $100,000 unit, a trader must have on deposit a margin amount of $2,000. If the trader gains 50 PIP s during the day, the $500 profit is a nice return on the $2,000 deposit. It is also possible for a trader to lose a similar amount or more if he guesses wrong on the direction of exchange rates.
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How to Calculate FOREX Rollover Rates - Foreign Exchange Rates
http://tinyurl.com/77aeo5l How to Calculate FOREX Rollover Rates - Foreign Exchange Rates How to Calculate FOREX Rollover Rates The forex markets operate 24 hours a day, seven days a week. Any nation that issues currency can trade its currency against another. Although he market is largely unregulated, there are certain trading conventions to be mindful of as they may also affect your bottom line. One such convention is that all spot trades are settled in two business days. This creates the need to "roll over" accounts. 1 Review the definition of a rollover. All forex spot trades must be settled within two business days. If you would like to extend your position without settling at the end of each trade day you can close your position by 5 p.m. (EST) on the settlement day and reopen the following trading day. This is referred to as a rollover. Traders do this by using a swap agreement. 2 Review how currency is quoted. Currency is quoted in pairs. The first currency is referred to as the base currency, and the second is referred to as the counter currency. The trader borrows money to purchase another currency. Interest is paid on the borrowed currency and earned on the purchased currency. The net is the rollover interest. 3 Obtain the short-term rate of interest for both the base and counter currency. Go to the treasury department of the issuing nation for current short-term rates. It is usually listed on the home page of the website for the treasury. 4 Work through an example. Let's say you purchase 100,000 CAD/USD at a rate of .9155. The short-term interest rate on the Canadian dollar (base currency) is 4.25 percent, and the short term interest rate on the U.S. dollar (counter currency) is 3.5 percent. 5 Set up the calculation. For the rollover rate, subtract the base currency short- term interest rate from the counter currency interest rate. 6 Find the dollar of the interest. Multiply the number of CAD/USD held by the difference between the CAD short-term interest rate and the USD short-term interest rate. Divide this by the product of the rate at which you purchased CAD/USD and 365. The calculation looks like this: {100,000 x (4.25% - 3.5%)}/(365 x 0.9155) and the answer is $224.40.
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How to Calculate Cross Currency PIP Value - Pip Value Forex
http://tinyurl.com/77aeo5l How to Calculate Cross Currency PIP Value - Pip Value Forex How to Calculate Cross Currency PIP Value Currencies are the most heavily traded commodity in the world. With markets all over the world, any nation can issue currency which can be traded on the market, however, not all currency is traded with the same level of liquidity as other currencies. That is, the more popular the currency, the smaller the pip. A pip is the smallest price change that a currency can trade in. It is the convention to trade currencies in pairs, so the quoted price is actually the ratio of two different rates. The major cross currency pairs are EUR/USD (euro/US dollar), GBP/USD (pound/US dollar), USD/JPY (US dollar/Japanese Yen), and USD/CAD (US dollar/Canadian dollar). 1 Determine the cross currency you would like to calculate the cross currency PIP value for. Use the EUR/USD cross currency rate as an example. As of January 13, 2010 the quote for EUR/USD is 1.4512. 2 Identify the pip. Determine the next level at which you could purchase EUR/USD. Look at a EUR/USD price chart or ask your broker for the next highest price above EUR/USD 1.4512. The next level of price the EUR/USD quote can go to is 1.4513. 3 Subtract one price from the other (the direction does not matter). The calculation is: 1.4513 - 1.4512. The difference is .0001. This is the value of one pip for most highly traded currencies.
Views: 5610 markharrisist
How to Calculate Pips - Foreign Exchange Trading
http://tinyurl.com/77aeo5l How to Calculate Pips - Foreign Exchange Trading How to Calculate Pips A pip is the smallest increment in foreign-exchange trading (FOREX). For instance, a move from 1.8100 to 1.8101 is a 1 pip movement; that is, a pip is equal to .0001. Traders use this to determine the value of 1 pip in each currency given a certain notional value. 1 Determine the notional amount. This is the size of the currency. For instance, the nominal value of 100,000 Japanese Yen (JPY) is 100,000. Let's say you want to find the value of one pip to exchange 10,000 EUR/USD (euro/dollars). The notional is EUR10,000. 2 Determine the currency exchange rate. There are numerous outlets that provide quotes for foreign currency. See Resources to a link to a popular online quote website. Let's say the exchange rate for EUR/USD is .8942. 3 Divide the value of 1 pip by the exchange rate. The calculation is: .0001 x .8942 = .00008942. 4 Calculate the value of a pip. Multiply the answer in Step 3 by the notional amount. The calculation is .00008942 x EUR10,000 = 1.1183.
Views: 3541 markharrisist
How to trade currency online (Forex) - Online Currency Converter
http://tinyurl.com/77aeo5l How to trade currency online (Forex) - Online Currency Converter How to trade currency online (Forex) Currency trade know as forex. If you like to know the stock trading or future trading. You may also like to know currency trading. In some way, they are similar, but more risk. On the other hand, more earning in short time. 1 Search online for "currency trade" or "forex". There are many agents all over the world. You don't need to be US to trade "money". But, there are several US companies provide service over sea. For example, "Forex.com", "FCXM.com" and "e-trade". You will find more than this list. 2 Sing up for practice account. Most company provide free practice account with real time market. It is good opportunity for people to know this trading and to see are they fitting to this kind of trading. 3 Also read all the learning information on the web site. You must read through the learning material. Most of them you may know if you familiar with stock trading or some other online trading. But you still need to read. Currency trading is much high risk than other trading. 4 After you have basic knowledge and try with your practice account. You than make the decision to start trading on real market or just go away.
Views: 473 markharrisist
How to Use Forex Trading Strategies - Online Stock Trading
http://tinyurl.com/77aeo5l How to Use Forex Trading Strategies - Online Stock Trading How to Use Forex Trading Strategies Forex trading is an investment strategy where in the investor watches the foreign exchange rates for currencies from various countries and purchases those currencies when they're undervalued. As the exchange rates equal out, the investor exchanges the currency he purchased for a currency at a normal or higher rate, thus making a profit. While forex trading strategies require a strong knowledge of foreign markets and complicated calculations, the steps below will point you in the right direction. 1 Study foreign markets and currencies using financial newsletters and the internet (see Resources). A thorough understanding of foreign markets is crucial to success at forex trading strategies. 2 Seek advise from a professional forex trading specialist (see Resources). Following these steps will help start your forex process, but a professional will walk you through the best strategies for you and answer any questions you have. 3 Watch the trading patterns of large corporations that actively use forex trading strategies. Such corporations have a lot of money at risk, so they will use the strongest and most successful strategies. 4 Purchase software that will aid in your forex trading calculations. 5 Find an undervalued foreign currency and, based upon the forex strategies best suited to your goals, make a purchase. 6 Wait for the rate of the foreign currency you purchased to equal that of your own currency. Once the currencies are more level, convert the foreign currency back to your own currency for a profit.
Views: 462 markharrisist
How to Master Forex Trading - Forex Trading Strategies
http://tinyurl.com/77aeo5l How to Master Forex Trading - Forex Trading Strategies How to Master Forex Trading Forex Trading or 'Foreign Exchange Trading' is a very risky business but can make you a lot of money if you know what you are doing. Trading moeny for profit isn't as easy as it seems so here are the steps to mastering Forex Trading. 1 Join a Forex trading website. Some websites have a minimum of $200 investment, and some have practice accounts where you can work on your trading skills. 2 Update yourself on terms frequently used in the Forex Trading world, such as 'intraday' and 'overnight position,' which relates to trading times. 3 Study economic and political trends and stay up to date on current events. The best Forex traders have extensive knowledge on trends and other economic traits. This can take some time, but its' rewards are great. 4 Invest in a bot. If you don't want to go deep into studying trends and such, you can buy a bot that recognizes trends and advises when to buy, and sell. You will want a bot that is frequently updated to optimize trading strategies. 5 The last step is to give yourself time to get used to trading. It can take a long time to understand the Foreign Exchange.
Views: 1679 markharrisist
How to Trade The Forex - Forex Trading System
http://tinyurl.com/77aeo5l How to Trade The Forex - Forex Trading System How to Trade The Forex The Foreign exchange market also known as the forex market or fx market is an exciting and fast past currency trading market. The forex is the most traded market in the world and it trades 24 hours a day somewhere in the world. Learning forex trading is a fascinating and high stakes market that can yield unbelievable profits as well as uncontrollable losses. Over 300 billion dollars exchange hands each day in foreign currency trading. It is not hard to understand the opportunities that are present here for the few who can learn the system. Trading in the forex is not for everyone but the training and understanding of the currency market might be a great learning experience for just about everyone. Do not trade foreign without proper training, understanding of the global economy and have traded a practice account. More on practice accounts in another article. 1 FOREX TRAINING Proper training is key in this fast paced dynamic climate. Training includes understanding charts, forex currency patterns, developing a forex trading system, forex courses, forex forums and more. 6 months to a year should be spent learning your own trading system before investing a dime. 2 FOREX COURSE As you might imagine, the training opportunities are endless and need to be approached with caution. Everybody thinks they have a system that works and they are ready to share it with you for a fee. Start deciding on a forex course after you have looked at some forex trading websites and learned the basics for free before investing in a forex course. Some forex courses are free from websites. 3 FOREX PIP Understanding the spread in forex and the pip of currency pairs will help you in choosing an online forex broker. Viewing forex real time quotes is imperative if you are going to trade. The online marketplace is competitive and multiple trading platforms and brokers should be researched prior to signing up. 4 ONLINE TRADING You will be trading online and in a day trading type style. Once you develop your system and put into place your stop losses, understand charting and devoting time to training you will have a strong foundation to go live with your training. 5 FOREX PLATFORMS The forex platform is the trading platform that you will be executing your trades with. Each forex trading company has their own platform that operates basically the same but each system will need to be learned by the trader to feel comfortable with the process.
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How to Find A Forex Broker - Forex Trading Platform
http://tinyurl.com/77aeo5l How to Find A Forex Broker - Forex Trading Platform How to Find A Forex Broker As the popularity of Forex trading increases, more and more would-be investors will be looking to brokers to help them manage their investments. Here are a few tips for finding a broker that handles currency trading: 1 If you are completely new to investing, the first place to go is the National Futures Association (NFA) website. This association maintains high standards for its voluntary members, and is one of the best resources for brokerage firms that are involved in currency trading. 2 If you already have a broker that is handling your investments for stocks and mutual funds but doesn't handle Forex trading, ask them for a referral. Be sure to clarify whether or not they know of the person or firm's reputation. You can also use NFA's Background Affiliation Status Information Center (BASIC) to do a search on any of the firm names that are referred to you. 3 Once you've been referred a couple of brokers or brokerage firms, call and talk to a customer service representative or in-house broker. If you don't get a good vibe, or feel that they're not going to be able to give you the kind of assistance you think you'll need, move on.
Views: 51 markharrisist