What is a Forex Pip


What is a Forex Pip

 

 

What is a Forex Pip

 

 

What is a forex pip? This is a question that most beginners ask. All forex traders need to be familiar with the pip, which is the unit of measure for price movements in the currency market. Since they measure prices, they are also a measure of the profit and loss of your trades.

Your account will normally show profit or loss in terms of dollars and cents or in your own currency. The broker’s software automatically calculates that. However, if you want to compare two trades that happened at different times or in different currency pairs, the profit in pips can tell you more than the profit in dollars which would be dependent on the currency and the rate of exchange.

One forex pip is the smallest measured amount of the price of a quoted currency. Most pairs are quoted to four decimal places. An example might be EUR/USD at 1.3712. One pip is 0.0001 units of the quote currency which is the dollar, so here it is 0.01 of a cent. If you open a trade at this price and it moves to 1.3717, you have made 5 pips profit, not accounting for spread.

Spread is the way that most brokers make their money and it also measured in pips. On EUR/USD a broker’s spread might be 2 pips. So taking our example again, the price of 1.3712 would be the bid price. If you buy at that price and the bid price increases to 1.3717, the 2 pip spread would mean that the ask price, or price that you get when you sell, would be 1.3715. So in fact you would only make 3 pips and the broker would keep the other 2 pips.

In pairs where the Japanese yen is the quote currency, the price is usually only quoted to 2 decimal places. That is because the yen is worth a lot less than the other major currencies. For example the price of USD/JPY might be 90.62. One pip is 0.01 of a yen.

It is useful to keep your trading records in terms of pips as well as noting the actual money that you make. This allows you to compare trades where your position size was different. You can then consider whether your system might work better if you altered the position size in some situations.

The forex pip is also a convenient way to discuss your trading successes with other traders in meaningful terms and without revealing any details of your financial situation. If I told you that I made $100 dollars on a trade yesterday, you would learn something about how much money I was making, but without knowing my position size you would know what kind of a price movement was involved. If I tell you that I made 100 pips, on the other hand, you would know that I found a good trade and I didn’t have to reveal anything that would interest the IRS.

When you begin trading, you will soon become familiar with any part of this that seems confusing right now. It does not take long to become accustomed to using the forex pip in practice.

What is a Forex Pip

 

 

What is a Forex Pip

What is a Forex Pip

 

 

 

What is a Forex Pip

 

 

What is a Forex Pip

 What is a Forex Pip

 

 

 

 

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

What is a Forex Pip

 

 

What is a Forex Pip

What is a Forex Pip

 

What is a Forex Pip

What is a Forex Pip

What is a Forex Pip

 

What is a Forex Pip DAILY MARKET REPORT
February 15th 2017

EUR/USD What is a Forex Pip

What is a Forex Pip

The American dollar got a nice boost from FED’s head Yellen, who reiterated in the Semiannual testimony before the Congress that “waiting too long to remove accommodation would be unwise,” putting a March rate hike back on the table. Furthermore, she downplayed the uncertainty on fiscal policy as just one of the factors to take into consideration when deciding a rate hike. The EUR/USD pair fell down to 1.0560, its lowest in over a month, further weighed by soft data coming from the EU earlier in the day. Growth in the area decelerated during the last quarter of 2016, with German Q4 GDP printing  0.4%, below the 0.5% expected, but above a previously revised 0.1%, while for the EU, the preliminary growth estimation printed 0.4%. In the US, the January PPI increased by 0.6% when compared to December, and by 1.6% from a year earlier, beating expectations.

Technically, the EUR/USD pair reached a major support, the 23.6% retracement of the November/January decline, as the pair struggled two weeks around the level before being able to recover further. The ongoing political uncertainty in the EU alongside with soft data in one hand, and in the other rising inflation and a hawkish FED, the fundamentals have aligned with the technical picture in a bearish case for the pair, particularly on a bearish acceleration below the mentioned daily low. Technically, the 4 hours chart shows that a bearish 20 SMA, now around 1.0620 keeps capping the upside, whilst technical indicators have stabilized near oversold readings, as speculative interest has reached its first bearish target and left the price consolidating in a well-limited range below the 1.0590 level.

Support levels: 1.0560 1.0520 1.0470

Resistance levels: 1.0590 1.0625 1.0660

What is a Forex Pip

 

USD/JPY What is a Forex Pip

The USD/JPY pair surged to 114.49, its highest since late January, reversing course following Yellen’s hawkish statement before the US Congress. The FED’s head woke up speculation of a March rate hike after saying that “at our upcoming meetings, the committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.” The USD/JPY pair traded with a soft tone at the beginning of the day, as risk aversion dominated the Asian session, following news that US President Donald Trump’s national security advisor Michael Flynn quit, over his contacts with Russia, a clear sign of how vulnerable the pair is to any headline coming from the US new administration. The modest tone of worldwide equities is keeping the upside limited, and technically, a major resistance stands a few pips above the mentioned high, at 114.55, the 23.6% retracement of this year bullish run. A break above it could fuel the advance, but technical readings in the 4 hours chart, don’t support the case, as the price is unable to advance beyond a bearish 200 SMA, whilst technical indicators are retreating within positive territory, not enough anyway to confirm a downward move.

Support levels: 113.95 113.40 113.00

Resistance levels: 114.55 114.90 115.40

What is a Forex Pip

What is a Forex Pip

 

GBP/USD What is a Forex Pip

The Pound fell to a daily low of 1.2443, but not because of Yellen’s hawkish stance before the Senate Banking Committee, but because of shockingly highs wholesale inflation figures. In fact, such low was achieved during the London session, with the pair confined to a tight 50 pips range afterwards, with the Sterling still reluctant to give up to dollar’s strength. UK CPI rose 1.8% in January when compared to a year earlier, its highest level in almost three years, even despite the MoM reading came in at -0.5%. Producer price inflation (input prices), meanwhile, surged to 20.5% from a revised previous 17% and well ahead of its 18.5% consensus forecast, due to rising energy costs. Output prices also rose by more-than-expected, but at a slower pace, up by 3.5% YoY from  previous 2.8% and against an expected advance of 3.2%. It won’t take long until producers pass rising cost on to consumers, with CPI now seen rising beyond 3.0% during the upcoming months. The big  question is how tolerant the BOE will be and for how long. The pair maintains the neutral stance seen on previous updates, although there’s an increasing bearish potential, as in the 4 hours chart, the price is now below a bearish 20 SMA, the Momentum indicator turns lower around its 100 level, whilst the RSI indicator consolidates around 43. The pair has an immediate Fibonacci support at 1.2430 which if broken, can lead to a steady decline down to 1.2346, February low. The pair needs to firm up beyond 1.2540, on the other hand, to gain some bullish traction during the upcoming sessions.

Support levels:  1.2430 1.2390 1.2345

Resistance levels: 1.2500 1.2535 1.2585

What is a Forex Pip

What is a Forex Pip

 

AUD/USD What is a Forex Pip

The Australian dollar rose to 0.7696 against the greenback this Tuesday, underpinned by better-than-expected  Chinese data.  China’s January PPI jumped by 6.9% from a year earlier, the largest annual increase reported since August 2011, and well above the 6.3% increase expected, and previous 5.5%. Consumer prices also rose by more than expected, reaching 2.5% yearly basis after  surging by 1.0% in the month, against previous 0.2%. The rally, however, stalled at a major psychological barrier, the 0.7700 level, reversing course as investors took some profits out of the table, and further falling with USD broad strength. The pair met some buying interest on a slide down to 0.7617, signaling that speculative interest is still willing to buy the dips towards 0.7600. Confined to its usual 0.76/0.77 range, the pair maintains its neutral stance in the 4 hours chart, as the price is a few pips below a horizontal 20 SMA, whilst the Momentum indicator heads modestly lower right below its 100 level, whilst the RSI indicator already turned higher around 48, limiting chances of further slides.

Support levels: 0.7605 0.7570 0.7530

Resistance levels: 0.7710 0.7745 0.7790

What is a Forex Pip

What is a Forex Pip

 

GBP/CAD What is a Forex Pip

Sterling’s weakness sent the GBP/CAD cross down to 1.6234, its lowest in a week, to end the day at 1.6295. The worrisome levels of wholesale inflation weighed on the British Pound, as output wholesale prices rose by 3.5% in the year to January, and by 0.6% when compared to the previous month. Input prices rose by a whopping 20.5% in the year to January, and by 1.7% from December, reaching the fastest rate of annual growth since September 2008. The Canadian dollar, on the other hand, closed the day flat against the greenback, although upcoming US stockpiles reports may affect the commodity related currency, and affect this sensitive cross. The technical bias is towards the downside, as the price is below a clearly bearish 20 SMA, currently at 1.6360, while technical indicators bounced from oversold readings, but lost upward strength and turned flat within negative territory. A break below the mentioned daily low should see the cross extending its decline down to 1.6180, the 50% retracement of its latest bullish run.

Support levels: 1.6235 1.6180 1.6125

Resistance levels: 1.6360 1.6415 1.6480

What is a Forex Pip

What is a Forex Pip

 

Dow Jones What is a Forex Pip

US indexes closed at record highs for a fourth consecutive session, with the DJIA reaching a new milestone right ahead of the close, settling at 20,504.27, up by 92 points or 0.45%. The Nasdaq Composite added 18 points and closed at 5,782.57, while the S&P gained 0.40%, to 2,337.58. The banking sectors led the way higher on hopes US President Trump will cut corporate taxes, with  JP Morgan Chase leading winners’ list within the Dow, up by 1.71%, and Goldman Sachs up 1.34%, closing at an all-time high. Apple also closed at an all-time high, up daily basis by 1.28%. The DJIA presents a strong bullish tone in the daily chart, as technical indicators keep heading north, although the RSI stands at 79, indicating extreme overbought conditions. Back in December, the indicator reached 86 before correcting lower, which means that current reading is hardly a sign of upward exhaustion. In the 4 hours chart, the index is far above its moving averages, with the 20 SMA heading sharply lower around 20,320, reflecting the buying fever around US equities, whilst technical indicators also head north in extreme overbought territory, with no aims to changing course.

Support levels: 20,489 20,432 20,385

Resistance levels: 20,550 20,600 20,650

What is a Forex Pip

What is a Forex Pip

 

FTSE What is a Forex Pip

The FTSE 100 lost 10 points this Tuesday, closing the day at 7,268.58, despite a strong earnings report from TUI, as the travel firm added 5.18%, after the company reported that its first-quarter losses had narrowed. Royal Bank of Scotland was the best performer, up 5.29% as the banking sector benefited from improving sentiment, while Rolls Royce Holding topped losers’ list, down 3.0% after reporting a pre-tax loss of £4.6bn. The index recovered some ground in after-hours trading, maintaining its positive tone in the daily chart, as it’s still holding well above its moving averages, while technical indicators continue consolidating within positive territory. Shorter term, the 4 hours chart shows that the index remains above a bullish 20 SMA, but technical indicators are heading marginally lower, still within positive territory. The Footsie needs to break above 7,298, Monday’s high to gather some upward strength, and advance up to 7,354, the record high posted last January.

Support levels: 7254 7,208 7,163

Resistance levels: 7,298  7,354 7,390

What is a Forex Pip

What is a Forex Pip

 

Gold What is a Forex Pip

An early advance in gold prices was quickly reversed post-Yellen, with the commodity closing the day marginally higher at $1,228.50 a troy ounce. Risk aversion dominated the Asian session, with most local share markets closing in the red, amid Trump’s security advisor resignation.     Slackened physical demand from retailers, weighed on the commodity, but it was increasing speculation of an upcoming US rate hike this March what sent the bright metal lower. Technically, the commodity maintains the positive tone seen on previous updates, as the price remained above a bullish 20 DMA, whilst technical indicators turned flat well above their mid-lines, paring the downward correction from overbought conditions seen at the beginning of the week. In the shorter term, and according to the 4 hours chart, technical indicators are hovering around their mid-lines, whilst the price struggles around a bearish 20 SMA. A major Fibonacci resistance stands at 1,230.00, with an upward acceleration beyond  it exposing this month high of 1,244.42.

Support levels: 1,221.80 1,210.10 1,200.00

Resistance levels: 1,230.00 1,237.10 1,244.70

What is a Forex Pip

What is a Forex Pip

 

 

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

What is a Forex Pip

 

What is a Forex Pip

 

 

What is a Forex Pip

 

 

 What is a Forex Pip

 

 

What is a Forex Pip

What is a Forex Pip

 

The Wellness Clarinet LTD is now sourcing below market value properties to purchase in lease options deals as a means of cash flow generation, security, to beautify the environment and to establish valuable joint venture relationships with private investors for mutual growth.
We are a Music, Lifestyle and Trading firm, creating strategies for people desiring change, the millennial generation, the music industry, and the newly divorced, in personal and financial growth through trading the stock market.

 

This property investment model increases net worth and the net worth of private investors. For the moment this model not part of our value proposition on offer to clients. Our aim is to invest in properties creating a prototype of financial freedom. To beautify the environment through reburbishment and generate positive cash flow for ourselves and joint venture partners.

 

What is a Forex Pip
Below market value property opportunities are everywhere, and there are certain criteria in which a property owner may wish to let go of their property below market value. Such as a quick sale, being in risk of repossession or as a solution to being in debt.

The property value is £100,000 buy 25% below market value at £75,000. The deposit of £18,750 is put up by the private investor. So the mortgage on the property would be £56,250.

Let’s assume the property is re-mortgaged after 6 months at its full value of £100,000 and not reburbished. The deposit can be returned to the private investor, plus the monthly agreed interest. And there will be £25,000 in equity left in the property. Plus rental revenues if so desired.

 

What is a Forex Pip
1. Split of profit. When the property is sold or remortgaged you the private investor can have a percentage stake in the property, and or ongoing profit. We can own the property together, use a ‘Deed of Trust’. Or you the investor can host the mortgage, for security if necessary.
2. The private investor lends the money to us directly. We pay the agreed interest per money until the money is paid back. Normally 1% to 3% for short term finance. 0.75% to 1.5% for more than 6 months. The security is in the property so any such concern is alleviated.
3. You the private investor receives a percentage of property revenues over 5 years.

What is a Forex Pip

What is a Forex Pip

 

What is a Forex Pip

 

 

What is a Forex Pip

 

What is a Forex Pip

 

 

What is a Forex Pip

 

What is a Forex Pip

 

 

What is a Forex Pip

 What is a Forex Pip

What is a Forex Pip

What is a Forex Pip

 

 

 

What is a Forex Pip

 

What is a Forex Pip


What is a Forex Pip

What is a Forex Pip

 

What is a Forex Pip

What is a Forex Pip 
What is a Forex Pip

What is a Forex Pip

What is a Forex Pip

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

 What is a Forex Pip

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

What is a Forex Pip

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

 

What is a Forex Pip

What is a Forex Pip

What is a Forex Pip

 

What is a Forex Pip

 

 

 

What is a Forex Pip

 

 

What is a Forex Pip

 

 

 

 

What is a Forex Pip

 

 

 





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