foriegn currency trading

If you were trading 3 lots or 30,000, each pip is worth $3 in profit or loss. A full size lot, or standard lot, is 100,000 where each pip is worth $10, and a micro lot size is 1,000, were each pip is worth $0. 10. Some currency pairs will have different pip values. Be sure to check with your broker. One of the nice things about trading currencies is there is no commissions. Looking at the quote image above, notice the small number of pips between the two quoted currencies: the difference in prices is 2. 5. This is known as the spread. The spread is how the broker makes their money and acts similar to the bid/ask in stock trading. Not all spreads are created equal.

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Foreign exchange is the act of changing one country's currency into another country's currency for a variety of reasons, usually for tourism or commerce.

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It is probably easiest to remember this by looking at a currency pair and saying “1 unit of the base currency buys how many units of the counter currency?”.

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You can earn profit in Forex Factory News Trading.