Posts Tagged ‘psychology’

Triple Threat FX – Pips Explained

Monday, February 15th, 2010

Here is an unusual program: Triple Threat FX

Some brokers are now starting to quote the other major currencies to 5 decimal places. Logically this should mean that one pip would be 0.00001 currency units, but the potential there for bafflement is massive, if a pip would be worth ten times as much with some brokers than with others. So it seems likely that the pip will stay at 0.0001 units for most currencies.

Most traders record their profit and loss in FOREX trading pips as well as in money. This enables simple comparison of one trade with another so you can evaluate a system. It also means that traders can debate their leads to a forex forum without revealing the size of their account or their profits in bucks and cents.