 In the Forex market now for example let’s say prices move from one third to 8 0 0 to 138 50. That is a 50 pit move. So if the market moves from 138 0 0 to 130 a 50 that is a 50 pick move. So a pip is a very small measure of change in a currency pair. Now let’s take a closer look at Pip’s. So here is a four X chart. And at this level we have the one on zero. This is the one on zero zero level. Now if the market should move 10 Pipp upwards then we will move from 1 1 0 0 to 1 won 10. So this is a 10 point move 1 1 0 0 to 1 1 10.

This is a 10 Pipp move. Now most brokers we have an extra decimal place. So 10 Pip’s will actually read a hundred pips. So this is actually 10 pips. Now here you can see tree numbers you can see won one engine entry and you can see won 11 and you can see one engine eleven point ten. One hundred and eleven point ten is the price. So the number to the right represents the price the number in the middle represents the pips on the number to the left.

The one represents the amount of candles. So from 1 11 0 0 if we want to go 10 pips up we will go to 1 11 10. And here we have won 11 10. One 11 10. This is 10 pips. If we wish to go say 20 pips we will go to won 11 20. That is 20 pips. And here you see 200 but its actually 20 pips. Most brokers are an extra decimal place. So instead of 20 you see 200 but it’s actually 20 pips would for X. And this is why 4 x is so lucrative for X let’s say you’re Riskin or let’s say you’re trading in one dollar per pick. If the market moves from here to here you just made \$20.

Now let’s say you’re trade in \$10 per Pipp if the market moves from here which is the 1 11 0 0 level to here you just made two on shred dollars. That’s if you’re trading \$10 per Pippy you just made \$200 because the market moved 20 pips. Now let’s say a trade in \$100 per pet. If the market moved 20 pips That’s \$2000 you just made in a matter of minutes. That is why Forex trading is so powerful. \$2000 in a matter of minutes. You can make when trading Forex. It’s absolutely amazing. Now let’s look at Forex trade sizes.

Now we have treat different types of plots. We have the microdots the meaning lot and the standard lot now with the micro lot each Pipp represents point one dollar. So point one dollar per Pip with the microlight with a mini lot each Pip represents one dollar. And a standard lot each Pip represents \$10 dollars. Now if you’re trading a large account let’s say your trade in \$50000 or more you may open a standard account which is a minimum of one standard lots. So that’s the lowest trade law you can use one standard lot which means the lowest amount you can risk is \$10 per pick.

Now with smaller accounts you can have a mini lots which means the small less amount you can risk is one dollar per pip. And with some accounts you can have a micro lot which means the smallest amount you can risk is point one dollar per penny. So would a microlight you can maybe start trading with ontrack dollars \$200 you can start trading with a small amount if you’re trading a Microsoft account because you can trade Riskin as low as point one dollar per pick.

That is a micro lot with a million lot the smallest amount you can risk is \$1 per pip. And with the standard lot the small amount you can risk is \$10 per pick. Now this is the difference between Forex and stock trading. Let’s say you invested a thousand dollars in the stock market and you bought 10 years. So that would make it a hundred dollar per share. So let’s say you bought 10 shares. Now let’s say the market moves at one point.

Your profit on that trade would be \$10 \$10 profit. Now let’s say you invested that thousand dollars in the Forex market and let’s say the market moves one point which is the same as a hundred pips. So let’s say the market move one ONJ and Pip’s. If you invested that \$2000 in the fork’s market you would have made \$1000 profit. That is if you’re trading at \$10 per Pipp that is the difference between the Forex market and the stock market or the stock market.