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Forex Pips and Profits

Most experienced forex traders calculate their success in terms of pips with regards to considering generated profits in their daily trades. But what are pips and how can they generate profits? Pip stands for ‘percentage in point’ which is the last unit in the four decimal places price of a major currency pair and the smallest change a rate can make. When a trader enters a ‘long’ position and the pip value increases the trader has generated a profit equal to the relevant increase in pips. Conversely, when a trader enters a ‘short’ position and the pip value goes up he might suffer the relevant losses in relation to the difference in pips.

Choosing a Broker and Avoiding Forex Trading Fraud

Prior to opening a Forex account one should perform a thorough research, on the internet, within forums, checking the broker’s features, platform, spread, demo account and many more. The better one researches, the greater the chances he or she will not only avoid a fraud but also make the best possible choice. A choice that will be the initial first very important step for a successful trading career!

Forex and Stock Market Main Differences

Choosing between the forex and stock market can be a very challenging task. In this article we will analyze the main differences. First, position taking which is the entry and exit of the market. Secondly, liquidity, which refers to the ease with which an investor can convert his expenses or assets into cash or withdraw his investment, any given moment. Last but not least, the market volume, whereby we need to stress the fact that the Forex market is approximately 70 times greater than the New York Stock Exchange (NYSE).

Introduction to Forex Fundamental Analysis

Fundamental analysis revolves around analyzing the key economic indicators of a given economy including its interest rate, GDP, unemployment, etc. and identifying the overall condition of the economy based on those data releases. The numbers of these indicators are released from time-to-time in a whole month, as they are from different sectors of the economy such as, housing, retail, construction, services, manufacturing, etc.

Stop Loss Definition and Its Use in Forex

Stop loss is a safety measure used by traders to prevent excessive losses – usually found with configurations in “long” or “short”. If the outcome of a trade comes out as adverse and losses are incurred, the stop loss will kick in and stop the trade at a predetermined point set by the trader. Whether one wishes to avoid excessive losses or even to lock in profits, the vast majority of trading styles may benefit from this useful tool.

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