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The Pip

Since we're trading in money, we keep score in pips. A pip is the quantum unit of money. It's the last decimal place, the smallest amount that's tracked for value. It's also something you're going to get to know and love, because it's where you make your money: in the pips.

The Other Forex Basics

Or, What Are Those Forex Traders Actually Doing?

The simplest explanation that's not so simple it leaves everything out is that forex traders are betting that one currency will increase in value against another. Someone may see that the euro is rising against the dollar and sell their dollars for Euros.

Once the euro peaks, they sell the Euros back for dollars and end up with more dollars than they started with.

Sounds good doesn't it?

The trick is in the timing, knowing when to get in and when to get out.  It's like that old country song; you have to "know when to walk away."

Anyway, enough about old music; let's get to the start of the matter: The market.

Since we're trading in money, we keep score in pips. A pip is the quantum unit of money. It's the last decimal place, the smallest amount that's tracked for value. It's also something.....(login to view article)

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