FOREX Pips Explained

Here I use trading tables; cheat sheets if you will. They are more than enough to get you started and until the calculations become second nature for you. Most of them are related to converting pips to dollars, profit and loss, and money management. You can use them by your computer as you trade. All of them are available for download from the Getting Started section of and can be customized. For the trading tables, pip values have been rounded off slightly in some cases to make them easier for the student to use.

As previously mentioned, pip values do change as the ratio of the currencies in a pair deviate from 1.00. Tip: Be sure you know how your broker calculates profit and loss. It is almost standardizedâ

By Michael Duane Archer
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2016. Content published with author's permission.

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