Connect with us


Why is Pip Value So Important in Forex Trading?



When calculating your stop-loss and taking profit orders, you must first calculate the pip value for each currency pair. Unless you are trading hundreds of currencies, you’ll find the dollar as the second currency in any pair. That means, if you fund your currency account with USD, you’ll have to enter orders using EUR or USD. And the same holds true for the Great British Pound. But why is pip value so important?

Traders must determine stop-loss in pips

A standard lot is one hundred thousand units of base currency. A /trade-size-mini lot is ten thousand units of base currency. A micro lot is one thousand units of base currency. If trading a micro lot, a pip is worth ten cents, so if a trader invests 2% of his account in it, he will have a maximum risk of four dollars. In addition, a stop-loss order placed fifty pips from the entry would require a risk of five dollars, which means that if the trade moves in his favor, he will have room to cover his losses.

In addition, a wider stop will account for volatility in the market. Many traders have been stopped out in volatile markets. Getting stopped out is a common part of trading, so it is essential to account for it. However, a wide stop may cause a trade to be stopped out at the worst possible moment, and this can be a disaster if the market turns against you.

Traders must calculate pip value

A lot of people get confused when they first start trading. First of all, traders need to understand how to calculate pip value. In forex, pip value is measured in the currency of the second position. A micro lot of the US dollar will be worth $0.10, while the same amount of Australian dollar will be worth $1. Similarly, the value of a standard lot of the British Pound will be equal to 7.46 AU dollars.

Traders must know the value of a pip before entering a trade, in order to manage risk properly and determine the proper trade size of the position. As forex transactions are usually leveraged, the pip value of a position is multiplied by the leverage used. Understanding the value of a pip allows traders to decide on the size of their positions and trade accordingly, avoiding excessive risk. Without knowing the value of a pip, traders may overexert their account and lose all their money. The best-trading market is available on Baxia Markets.

Currency pairs with USD as their quote currency have a $10 pip value

In forex trading, the standard lot in a particular pair is equal to $10. To determine the exact amount of a pip, you must know the first currency in the pair. For example, if you want to trade USD/CAD, you should first divide the amount by the standard lot size of $1.00. In this way, you can easily calculate how much one pip is worth.

The exchange rate between two currencies changes in value when the base currency increases in value. Conversely, it decreases in value when the base currency falls. Because of this, the currency pairs are usually presented with the quote currency first and the base currency second. Some currency pairs have a specific historical convention, however. For instance, EUR/USD conversions are listed as EUR/USD and not USD/EUR.

Currency pairs with EUR as their quote currency have a $1 pip value

In forex trading, currency pairs are always quoted in two currencies, the quote currency and the base currency. For example, EUR/USD means that if you trade one million euros for one million dollars, you will end up losing $1.20 in the process. When you trade EUR/USD, the price you see on the screen is the price of the quote currency, which is the euro. You will have to translate this number into the base currency at the end of the transaction to get your final amount.

To calculate the pip value for any pair, you need to know the second currency in the pair and the denomination of the account in that currency. The amount you trade is also important, as a single pip is equivalent to $1 in the base currency. In GBP/USD, a standard lot of 100,000 base units would result in a $10 pip value, while a micro lot would result in a $0.10 pip value.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.


Owner of iPhonix mobile Abhishek Balsara offers iPhones at the best rates



Owner of iPhonix mobile Abhishek Balsara offers iPhones at the best rates

iPhonix mobile

The iPhone can be an expensive option for some, but its price covers all the requirements of a person’s life and it is completely reliable. With an iPhone, you probably don’t need any other external devices.
These days, people are very careful about what they buy and what they wear, and depending on the trend, they also pay attention to the type of purchase. As the world of technology evolves, so does the demand for more functionality. This is the reason why the iPhone has become so popular in India and is currently the longest running phone that competes with Android.

Abhishek Balsara

To be precise, the iPhone is admired by almost everyone because it not only looks good but also has essential features that are really useful for the people who use it. Also, there have been a lot of updates as the company has been waiting for what people actually find useful and necessary in a phone. The iPhone may be an expensive option for some, but its price is completely reliable as it covers all the requirements of a person’s life. . With an iPhone, you probably don’t need any other external devices. You can trust him and his tasks so you never have to worry again.

The price range is usually a big problem for people, but today we will talk about the people and their institutions that make these smartphones very cheap and affordable. This is the only store that offers the latest genuine iPhones at the lowest prices and no other store offers similar products and services. It has been around for a long time and can be completely trusted due to its solid reputation and the great reviews it has collected over the years.

iPhonix Mobile is completely customer focused and has provided unmatched customer service for a long time, earning people’s trust and admiration. So come on, if you want the perfect smartphone, you know where to go. Not only is it the latest trend in the market, but it is also very affordable.

Please visit iPhonix Mobile at the link below for the latest product information. Be the first to get it!

Continue Reading


How to Find an Obituary for a Specific Person



How to Find an Obituary for a Specific Person

As part of your family tree or ancestry research, you may need to find the obituary of a particular person. This article provides a list of resources to help find the obituary of a particular person.

Obituaries are one of the most important sources of information genealogists look for when looking for clues related to the life of their ancestors. What many may not know is that the practice of announcing death in this way dates back to 59 BC.

Roman newspapers inscribed in metal or stone, known as the Acta Diurna (Daily Events), are published in important places in Rome. It features celebrity births and deaths, as well as general gossip about important people in the city.

In 1439, the printing press was invented, and with the advent of newspapers, the practice of announcing prominent deaths continued.This has survived and is still a common practice.

So why do genealogies need obituaries, and more importantly

, how do you find the obituaries you need for your research?

Importance of obituaries

relatives and friends
Those with aging parents or who lived with grandparents may have sat and read the local newspaper to see if anyone they knew had died. As we grow older, we feel a morbid fascination with our own mortality, and as a result, we become fascinated by the people we meet and those who are close to our own age.

An obituary is an opportunity for families to let people they don’t know know that a loved one has died. In many cases, this allows family members to let people know when the funeral will be held, and old friends to attend and offer their condolences.

Obituaries serve an important social function. Because bereaved families don’t have to spend time grieving connecting with everyone the deceased loved one may have known.

Although obituaries are very important to genealogists, they are technically not considered definitive documentary evidence. Searching for ancestors in obituaries can help you find important information such as:

close relatives
Religion and Church Affiliation
date of birth and place of birth
place of death and date of death
former job

important biographical information

The family information provided in the obituary helps distinguish between the two of her namesakes in official documents. Knowing the names of siblings and parents makes it easier to determine a person’s accurate census record.
As with any mystery, there may be many small clues here to help you find the truth and the documents that support it. should always be taken as clues until further evidence is documented.

Continue Reading


Cost increases faced with end of Adjusted Right to Rent checks



Cost increases faced with end of Adjusted Right to Rent checks

Rental agents are taking significant steps to comply with rental eligibility checks as the system allowing for coordinated checks (for example via Zoom calls and copies of documents) will end in the UK on 30 September of 2022. We are facing increasing costs.

From October 1, 2022, agents responsible for reapplying for tenants and rent checks will need to review their processes to be ready to return to manual in-person checks (this may be because someone who qualifies as a UK resident you will still be admitted if you present a valid ID). and Irish citizens), or register with one of the proptech service providers accredited by the UK government as a Digital Identity Service Provider (IDSP). Foreign checks must be processed through the Ministry of the Interior’s Sharecode system, to which agents have free access.

The change comes at the same time that agencies will have to deal with rising energy bills and rising staff retention costs by maintaining competitive compensation packages.

IDSP cost for British and Irish citizens
With the announcement of the first IDSP under the UK’s digital identity and attribute trust framework, agents need to be aware of and prepare for the upcoming changes. With the promulgation of the Tenant Fees Act 2019, the costs associated with the delivery of checks for the right to rent have not changed and cannot be passed on to applicants.

Coordinated checks were introduced as part of COVID-19 measures to reduce face-to-face contact and have been expanded as the Home Office works to implement a robust digital solution for national checks in the UK and Ireland. If an agent wishes to provide digital checks to people with ID cards in the UK and Ireland, once adjusted rental eligibility verification is complete, the agent will need to register with an ID service provider who will incur a fee for the service. Alternatively, agents can provide a manual verification in person if the applicant provides a suitable British or Irish ID. If an agent chooses to use IDSPs, they must take into account UK and Irish citizens who choose to verify their identity offline and must not discriminate on that basis.

Digital verifications for foreigners can be done easily and at no external cost by verifying through the home office system in real time using the common digital code and date of birth provided by the applicant.

If the agency’s system relies primarily on in-person reviews, consider the need for additional time and resources to schedule appointments for applicant reviews (and follow-up reviews of submitters, subject to time constraints). status) and the associated time change.

Keeping track of rent checks is more important than ever
Propertymark members notify the Home Office to establish a “legal excuse” for agents to provide statutory audit information if they are unable to obtain a foreign rent check again during the rental period. against late and/or civil penalties.

The Rental Law Code of Practice is ambiguous about liability for civil penalties when agents use IDSPs. The ultimate responsibility for verification rests with the landlord or designated rental agent. Therefore, the use of a UK government accredited IDSP does not eliminate all risks of civil penalties for landlords or designated rental agents when investigated by immigration authorities.

The reintroduction of personal checks coincided with seasonal changes in the incidence of COVID, the impact of which is unknown.

Since it was first introduced under immigration law in 2014, the work required for agents to complete rent checks in the UK has increased dramatically and there are now over 100 pages of instructions for agents to understand. years. The Rent Payments Act of 2019 forced agents to incur higher costs in this area.

A period of additional requirements is coming, whether agents continue to conduct in-person rental checks during application and follow-up or use one of our approved IDSP providers. This is a particular problem given the heightened scrutiny of students who are British citizens from the academic year onwards.

Continue Reading