- Description
Description
Forex Pip Buster System
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Forex Trading – Foreign Exchange Course
You want to learn about Forex?
Foreign exchange, or forex, is the conversion of one country’s currency into another.
In a free economy, a country’s currency is valued according to the laws of supply and demand.
In other words, a currency’s value can be pegged to another country’s currency, such as the U.S. dollar, or even to a basket of currencies.
A country’s currency value may also be set by the country’s government.
However, most countries float their currencies freely against those of other countries, which keeps them in constant fluctuation.
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Overview
Pip = “price interest point”.
A pip measures the amount of change in the exchange rate for a currency pair.
For currency pairs displayed to four decimal places, one pip is equal to 0.0001. Yen-based currency pairs are an exception and are displayed to only two decimal places (0.01).
Some brokers now offer fractional pips to provide an extra digit of precision when quoting exchange rates for certain currency pairs.
A fractional pip is equivalent to 1/10 of a pip.
Determining Pip Value
The monetary value of each pip depends on three factors: the currency pair being traded, the size of the trade, and the exchange rate.
Based on these factors, the fluctuation of even a single pip can have a significant impact on the value of the open position.
