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Forex Pip: Maximize Profits And Minimize Losses


The Forex pip is a measure of the success or failure in Forex trading. https://www.fxcm-markets.com/ Find out how to maximize pips (and profits) while minimizing risk in Forex trading.



As you'll soon learn, the Forex pip can be your best friend or worst enemy. We'll start by defining a Forex pip. fxcm markets Next, I will discuss how to maximize your pips and profits while minimizing your losses.

What is a Forex Pip?

First things first. What is a pip exactly? 9ma trading The smallest increment in the forex market is called a pip. It stands for "percentage-in-point". Since most major currency pairs (the Japanese Yen being an exception), are priced to 4 decimal places, the smallest change would be reflected in the last decimal point.

Basically, the Forex pip is the measuring stick for gains or losses when trading currency. Let's look at an example to get a deeper understanding of this. EUR/USD could be offered at 1,1815, and then bid at 1,1820. This is a spread of 5 pips. So, if you bought a certain number of Euros at the bid price, and then later sold them for the offered price, your profit would be 5 pips. (Obviously. the amount of money that you make is dictated by how much currency you bought and sold for profit.)

What the Forex pip means to you

Forex trading is successful when you maximize the pips you earn by trading as much as you can. To be successful, you must have more pip wins than pip losers in your trading. Let's be honest, it is impossible to win every time. What you really want are more pip wins than losses.

How to Maximize Pip and Minimize Losses

The perfect scenario is to buy currency at its lowest value, and then sell it once it has reached its highest value before dropping. But that is easier said than done. The rise or fall in currency value is determined by a variety of factors. So, what can you do?

Many Forex Traders are turning to Automatic Forex Robots to do the trading for them. This is a great way to maximize pips, while keeping the risk in check. These computer programs, or scripts, stay up to date with the Forex market. They trade according predetermined indicators that are set by professionals. So, instead of trying to figure out everything for yourself and being glued to your computer 24 hours a day, from Monday to Friday, you let the automated Forex software do the trading for you.
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