Comments on: Pip Value Formula http://www.forexnewbies.com/pip-value-formula/ Forex articles tips tricks ebooks tools novice forex trader advice Wed, 01 Feb 2012 09:17:46 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: St,Cyrus http://www.forexnewbies.com/pip-value-formula/comment-page-1/#comment-1876 St,Cyrus Tue, 21 Jun 2011 11:31:31 +0000 http://www.forexnewbies.com/?p=425#comment-1876 the issues of the base and quote current still bewild me and feel not well place but been a newbies in fx, the most one that is peg my net is buy and sell, buy at uptrend, y? not at downtrend,bis in the course of buying and selling, you willing to buy goods when the current reduce to a low rate, and other hand sell it at when the price ascended,i hope written is not out of points. the issues of the base and quote current still bewild me and feel not well place but been a newbies in fx, the most one that is peg my net is buy and sell, buy at uptrend, y? not at downtrend,bis in the course of buying and selling, you willing to buy goods when the current reduce to a low rate, and other hand sell it at when the price ascended,i hope written is not out of points.

]]> By: admin http://www.forexnewbies.com/pip-value-formula/comment-page-1/#comment-1841 admin Tue, 29 Mar 2011 08:23:43 +0000 http://www.forexnewbies.com/?p=425#comment-1841 ozfader, Since so many people find it confusing, I've finally changed the terminology in the article :). ozfader,

Since so many people find it confusing, I’ve finally changed the terminology in the article :) .

]]> By: ozfader http://www.forexnewbies.com/pip-value-formula/comment-page-1/#comment-1840 ozfader Tue, 29 Mar 2011 04:52:53 +0000 http://www.forexnewbies.com/?p=425#comment-1840 This is basic flaw. The base currency is ALWAYS the first currency because it's always equal to 1. If you're buying, the exchange rate will tell you how much of the QUOTE currency (second in the pair) will it cost to buy the BASE currency. If you're shorting, it will tell you how much you will receive in the QUOTE currency for each unit of the BASE! By calling the second in the pair the base, you're going to confusie any new trader that reads this article. If you're going to teach, please get it right! This is basic flaw. The base currency is ALWAYS the first currency because it’s always equal to 1. If you’re buying, the exchange rate will tell you how much of the QUOTE currency (second in the pair) will it cost to buy the BASE currency. If you’re shorting, it will tell you how much you will receive in the QUOTE currency for each unit of the BASE!
By calling the second in the pair the base, you’re going to confusie any new trader that reads this article. If you’re going to teach, please get it right!

]]> By: forex http://www.forexnewbies.com/pip-value-formula/comment-page-1/#comment-910 forex Wed, 20 Oct 2010 23:45:49 +0000 http://www.forexnewbies.com/?p=425#comment-910 which is that the FIRST currency in a pair is referred to as the base currency and the second of the pair is the “quote” currency. I really think this should be edited. Quoting from Investopedia: “What Does Base Currency Mean? which is that the FIRST currency in a pair is referred to as the base currency and the second of the pair is the “quote” currency.
I really think this should be edited.
Quoting from Investopedia:
“What Does Base Currency Mean?

]]> By: admin http://www.forexnewbies.com/pip-value-formula/comment-page-1/#comment-250 admin Sun, 25 Apr 2010 06:21:43 +0000 http://www.forexnewbies.com/?p=425#comment-250 Dictionary definitions aren't always good. The only reason I call the second currency the "base currency" is because it's they currency you spent to position a trade and it's the currency that you earn/lose from the trade. I guess I've explained quite clearly where is which currency in the pair and it's easy to understand how to calculate the value of the pip despite the reader's previous concept of the base currency. It's not the intent of the article to change that concept. Dictionary definitions aren’t always good. The only reason I call the second currency the “base currency” is because it’s they currency you spent to position a trade and it’s the currency that you earn/lose from the trade. I guess I’ve explained quite clearly where is which currency in the pair and it’s easy to understand how to calculate the value of the pip despite the reader’s previous concept of the base currency. It’s not the intent of the article to change that concept.

]]> By: MALCOLM http://www.forexnewbies.com/pip-value-formula/comment-page-1/#comment-249 MALCOLM Sun, 25 Apr 2010 01:10:04 +0000 http://www.forexnewbies.com/?p=425#comment-249 At first I was very confused, because this author calls the SECOND currency of any pair the "Base currency". This is contrary to generally accepted practice, which is that the FIRST currency in a pair is referred to as the base currency and the second of the pair is the "quote" currency. I really think this should be edited. Quoting from Investopedia: "What Does Base Currency Mean? The first currency quoted in a currency pair on forex. [... ] It is sometimes referred to as the "primary currency". Investopedia explains Base Currency For example, if you were looking at the CAD/USD currency pair, the Canadian dollar would be the base currency and the U.S. dollar would be the quote currency. " At first I was very confused, because this author calls the SECOND currency of any pair the “Base currency”. This is contrary to generally accepted practice, which is that the FIRST currency in a pair is referred to as the base currency and the second of the pair is the “quote” currency.
I really think this should be edited.
Quoting from Investopedia:
“What Does Base Currency Mean?
The first currency quoted in a currency pair on forex. [... ]

It is sometimes referred to as the “primary currency”.

Investopedia explains Base Currency
For example, if you were looking at the CAD/USD currency pair, the Canadian dollar would be the base currency and the U.S. dollar would be the quote currency. “

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