What is a Pip in Forex?

If you are interested in forex and read analytical and news articles, you probably came across the term point or pip. This is because pip is a common term in forex trading. But what is pip and point in Forex?

In this article, we will answer the question of what is a pip in forex market and how this concept is used in Forex trading. So, just read this article to find out what are pips in forex.

What is spread in Forex Trading?

Spread is one of the most commonly used terms in the world of Forex Trading. The definition of the concept is quite simple. We have two prices in a currency pair. One of them is Bid price and the other is Ask price. Spread is the difference between the Bid (selling price) and the Ask (buying price).

With the business point of view, brokers have to make money against their services.

Learn Forex Trading step by step

Among the many investment instruments, Forex trading is an attractive way to increase your capital conveniently. According to the 2019 Triennial Central Bank survey by the Bank for International Settlement (BIS), statistics showed that Trading in FX markets reached $6.6 trillion per day in April 2019, up from $5.1 trillion three years earlier.

But how does all of this work, and how can you learn forex step by step?

How to read Forex charts

In the trading world of Forex, you must learn the charts first before you can begin trades. It is the basis on which most exchange rates and analysis forecasting is done and that is why it is a trader’s most important tool. On the Forex chart, you will see the differences in currencies and their exchange rates and how the current price alters with time. These prices range from GBP/JPY (British pounds to Japanese yen) to EUR/USD (Euros to US Dollars) and other currency pairs you can view.

Can anyone become a successful Forex trader?

Without a doubt successful retail Forex traders come in all shapes and sizes, from all corners of the planet. Some take to the task very quickly, some take longer, some do it part time, others full time, some are fortunate to have the time to dedicate towards what is a very complex challenge, others don’t.

A few Forex trading myths; discussed and debunked - Part 2

Only a tiny percent of retail traders will ever make it

There’s lots of information, data and opinions on this subject, but none of it is conclusive or definitive. We read that 95% of traders fail, that only 1% of forex traders make a living trading and that the vast majority of traders give up after three months and an average €10k loss. These figures may be true, but they require further analysis before accepting them as truth.

A few Forex trading myths; discussed and debunked - Part 1

Whether we discover the activity of retail forex trading by accident or design, we’re social animals and in the social media world we now inhabit, we’ll eventually discover forums and other social media methods, to share and discuss our trading ideas. As we discover forums and other discussion venues, we’ll note that certain biases take over. A form of group think eventually develops and overcomes certain subjects; “this works, this doesn’t, do this, don’t do this, ignore that, pay attention to this”...

A disciplined approach to trading Forex may eliminate the short-term risk

As traders we pride ourselves on creating a bullet proof trading plan that has strict money management/risk control and discipline. And yet, the suggestion from the title, is that there are times when we watch profit escape us, we knowingly let it happen, without trying to capture that extra profit.

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