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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. www.fxcm-markets.com/ Learn how to maximize profits (and pips) in Forex trading while minimizing risks.



As you'll soon learn, the Forex pip can be your best friend or worst enemy. We'll start by defining a Forex pip. important site 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? tradingview malaysia 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.

The Forex pip can be used to measure gains and losses in currency trading. To better understand this, let's take a look at an example. 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

Successful Forex trading occurs when you maximize your pips when you trade as much as possible. Thinking long term and logically, to be successful you need to have more pip gains than pip losses in your trading. It is not possible to win all the 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. It is not as easy to do as it sounds. There are numerous and varied factors that determine the rise or fall of currency values. 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. Instead of spending your time on the computer all day every day from Monday through Friday trying to figure everything out, let the automated Forex trading software handle the trades for you.
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