The Pip Price is the amount you trade with for each pip movement in a currency pair. The Pip is the last decimal of any currency rate and it is short for "price interest point". Each movement of this last decimal pushes the currency pair (EURUSD, for example) up or down by the amount you selected for the Pip Price.
In the example below, the pip is highlighted in red: EURUSD 1.3140
Pip Trading example: You set the Pip Price to USD10 and buy EURUSD at 1.3140. Then, the last decimals of the sell rate (the big numbers on the Pip Trader) move from 1.3137to 1.3147, it means that you have gained USD100. Obviously, if the last decimals of the EURUSD went down to 1.3130, you would have lost USD100.
On an average day this decimal, the pip, changes several thousand times. The rate normally fluctuates within a range of 50-100 pips during 24 hours in most currency pairs. You should be aware that in fast-moving markets, these decimals can move very quickly; movements of 50 pips are not unusual within just 7 minutes of trading time.
Simply scroll up or down in the Set Pip Price window on Pip Trader to set how much you want to invest in each pip movement. You can set your Pip Price between USD1 and USD100. For example, if you choose a Pip Price of USD10 and the rate moves 30 pips in your direction, you will earn USD300 (minus the 4-pip spread).
You can set different Pip Prices for different trades but an open trade cannot be split; you must close each position as one trade.
In Pip Forex you can trade when the market goes up and when it goes down. For example, if you think the EURUSD is on its way down, select your Pip Price and then hit 'sell'. If you think it is on its way up, but hit 'buy' instead.
If you sell a currency pair (EURUSD for example), you will earn a profit when the price for this pair goes down.
If you buy a currency pair (EURUSD for example), you will earn a profit when the price for this pair goes up.
Go to how to trade Pip Forex for more information.
On Pip Forex, you can automatically close a trade at the price you want. This means you can take your profit by entering the price in the Max Exit field or limit your losses by entering the price in the Min Exit field.
If the market goes up to your Max Exit level, you will automatically close your position and take your profit. If the market goes down to your Min Exit level, you will automatically close your position and limit your losses.
Click on the Min Exit or Max Exit field in the Open Trades tab and then type in the five-digit rate you want to close your trade at and then press 'enter'.
You bought EURUSD at 1.3690 and want to limit potential loss to 30 pips.
| 1. |
Find the buy trade in the Open Trades list |
| 2. |
Click in the Min Exit cell in the column to the left |
| 3. |
Fill in the numbers 13656 which corresponds to 30 pips lower than the sell rate when you opened the trade |
| 4. |
Press 'enter' and you have protected yourself |
You bought EURUSD at 1.3690 and want to take potential profit when the sell price goes up 30 pips above the price you paid when you bought EURUSD.
| 1. |
Find the buy trade in the Open Trades list |
| 2. |
Click in the Max Exit cell in the column to the left |
| 3. |
Fill in the numbers 13720 which corresponds to 30 pips higher than the sell rate when you opened the trade |
| 4. |
Press 'enter' and you have protected yourself |
You sold EURUSD at 1.3690 and want to limit potential loss to 30 pips.
| 1. |
Find the buy trade in the Open Trades list |
| 2. |
Click in the Max Exit cell in the column to the left |
| 3. |
Fill in the numbers 13724 which corresponds to 30 pips higher than the buy rate when you opened the trade |
| 4. |
Press 'enter' and you have protected yourself |
You sold EURUSD at 1.3690 and want to take potential profit when the buy price goes down by 30 pips.
| 1. |
Find the buy trade in the Open Trades list |
| 2. |
Click in the Max Exit cell in the column to the left |
| 3. |
Fill in the numbers 13656 which corresponds to 30 pips lower than the
buy rate when you opened the trade |
| 4. |
Press 'enter' and you have protected yourself |
Note: The rates are always expressed in five digits without commas, decimal points, or other separation; for example, a rate at 1.3243 should be filled in as 13243.
Note: Placing an Exit on the wrong side of Current rate is not allowed.
You can change or delete a Min Exit and Max Exit order at any time, even if your exit level is only one pip from the current rate on Pip Trader.
| 1. |
Click in the Min Exit or Max Exit cell in the Open Trades tab |
| 2. |
Enter the new value or press delete to remove the order |
| 3. |
Press 'enter' |
Note: A previously accepted value is valid until you press 'enter' on a new value or an empty cell.
You will notice that there is a difference between the sell and buy prices shown in Pip Trader. This difference is known as the spread and it defines the cost of the trade. So, when you buy EURUSD at 1.3690 the sell price will be 4 pips lower, at 1.3686.
This field shows the maximum Pip Price which you can pay at any time to open a new trade. The Max Pip Price is based on the equity in your account at any time, divided by 50. Any open trades will reduce the Max Pip Price accordingly.
However, we do not encourage you to trade at the Max Pip Price allowed by Pip Trader. If the market moves dramatically against you, your trades will be closed by the system if you do not have enough funds in your account. If you are confident that the market will soon move in your favour, top up your funds by Cashing In.
If you want to add more funds to your trading account, just click on the Cash In button in Pip Trader or on this website and top up your account balance online. Alternatively, you can transfer funds via bank transfer. If you want more information on how to add funds to your account, check out the Cash In page.
We try to make it as easy as possible to remove funds from your account. See for yourself how easy it is to add funds here Cash In, and withdraw funds here Cash Out.
You will always need to have some money in your account to keep your trades open. Your account must always be able to cover a movement of one pip, regardless of how much you have paid for that pip when you selected the Pip Price. Most brokers demand that you have the funds in your account to cover movements of between 50 and 100 pips.
This is what the financial industry refers to as a Margin Call - when your account can no longer support the equity requirement needed to keep your positions open.
With us, it is not possible to lose more than you actually have deposited in your account. If the price you pay for a currency pair moves so dramatically that your total deposit is lost, the system will automatically close your position or positions, guaranteeing that you will face no further losses and no costs at all.
All trades that you keep open overnight are subject to a daily maintenance fee equal to the price you paid for 1 pip on each of your open trades. For example, if you have set the Pip Price at USD10 on a EURUSD trade, then you will be charged USD10 to keep this position open overnight.
This fee will be added to any open trades at 22:00 UTC (GMT). If you don't have any open trades at this time, you will pay nothing.
The Overnight Fee is a small fee we have to charge you to keep trades overnight on the international Interbank Market. When applicable, the overnight fee will show in the Prm (Premium) column.
When you open a Practice Account you get much more than a demo trading system
for as long as you want to use it. You can also add and withdraw practice funds
to your account in exactly the same way as you do with a Live Account, minus the transfer of real funds.
To open your Practice Account, click here.
Pip Forex is owned by Simray Holdings LLC, a company regulated by Norwegian law.
Risk Warning:
Forex trading (also known as foreign exchange or currency trading) contains risk. However, your risk is strictly limited to how much you have in your account. As a rule, you should only trade forex with money that you can afford to live without. Some people will be successful in their forex trading and some will not. So, you should consider your trading options and your budget before you start trading.
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Pip Forex takes no responsibility for errors or inaccuracies in its materials,
and accepts no liability for any damages, including monetary losses that
may result from these materials. Online trading carries risk, which you
must accept.
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