Money Management | Forex Newbies

Pip Value Formula

Author admin on March 29th, 2010

The standard pip value for the USD-based account and the USD-based currency pairs (EUR/USD, GBP/USD, AUD/USD, etc.) is $10 for the standard lot. But many beginning Forex traders soon stumble upon the non-USD currency pairs (USD/JPY, USD/CHF or more difficult – EUR/JPY, EUR/CHF) or the non-dollar based accounts. In all those cases, the value of a single pip for your positions isn’t obvious. Here’s simple formula to calculate the pip value in all possible [...]

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Forex Basics

Money Management Rules: The Importance of Setting Strict Thresholds

Author admin on August 14th, 2008

In forex like in other forms of investment, deciding beforehand exactly how much you’re going to risk in a trade and when you’ll be getting out is something of the utmost importance. In forex more than in other markets, though, novice traders tend to avoid this fundamental step completely.

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