Can somebody who's good at explaining stuff tell me the way lot size, leverage, volume along with your invested funds affect profits or losses ?
It is Somewhat musky.
Can somebody who's good at explaining stuff tell me the way lot size, leverage, volume along with your invested funds affect profits or losses ?
It is Somewhat musky.
I see - thanks much - is there a particular way to compute exactly what a pip (either negatively or positively) would worth against a particular lot size and leverage?Originally Posted by ;
You have several methods to calculating pip values. .
It is possible to use the symbols properties in MT4 as shown here:
http://en.tradimo.com/learn/metatrad...ing-pip-value/
Utilize one of several pip calculators tools on Forex Sites:
http://www.babypips.com/tools/forex-...s/pipvalue.php
http://www.earnforex.com/pip-value-calculator
Also - determine position dimensions:
http://www.babypips.com/tools/forex-...sitionsize.php
http://www.earnforex.com/position-size-calculator
Finally you might have a'pips worth' indior or EA that's available via your broker... IBFX has this and I am sure others do too.
Hope that helps.
Cheers.
In addition, I have questions regarding FX. I have been utilizing the trading platform MT4 for many weeks now, and I have recently began winning all my trades. (1) I am still having trouble calculating what my real cash value would be when I was using real money and not a demo account. (2) Once I put my stop loss/take profit, the software does not recognize the request, I think I am doing it properly. (3) Why do we need to go LONG or SHORT? Why can't we just buy/sell, wait until the candle reaches our preferred number and make profit? Instead of waiting 10, 20, 30mins or hours? Thank you for your replies to my questions.
Musky..LOL, could have gone with something else. .
Getting back to your question, most brokers offer you a calculator to compute the pip worth...
(1) If you've Trade tab selected in the MT4 terminal directly click on any of you open trades and choose profit check deposit currency: this will list open trades in real amounts which is being won or lost. Also under the Account History previous trades can listed. . Scroll towards the bottom it shows complete losses or winning based on filter setting in the account history. . Instance (all) is all trades. . (Last Week) the current week... (Last Month) the current month...
You would have to do a percentage calculation in case you were going to compare it to a what a real account could return of a different deposit value. Example. . 20% profit on demonion would also be 20% profit on actual with the very same trades. . Just different amounts. . (Divide winnings / complete deposit = percent as decimal) x 100 = standard ratio of 100. . Like 20 percent or transfer decimal to place into the left.
(2) Setting stop loss / take profit must be in the correct format per the broker and be far enough away from price to be out spread.
(3) Long and Short is buying and selling. . In pair trading you doing two things at precisely the exact same time when you make a transaction. . Borrowing from 1 currency to buy another currency. . So in the event that you go short on usd/cad you theoretically borrow US dollar to buy Canadian dollars expecting the value of the US dollar to fall compared to the Canadian dollar. For the second portion of this question refer to (two ).
Checkout BabyPips: School of Pipsology
http://www.babypips.com/school/
This will help you a lot in this area. . For basic understanding of the Forex Market.
Thank you Java for your really helpful info. You could solve all my questions except the final regarding my point (3), so allow me to describe. I detect price fluctuates quite rapidly when I place an order. In a matter of seconds I can go from using -18 pips to 50 pips. My query is, with just price action, can't I just await the profit to reach 50pips then take profit? Ive done this many times, I just need to make sure it works the exact same in a Live account.
of course you can. But in real accounts you struggle against slippage . Btw I believe you are discussing pipettes.
Pip = a change of 0.001 on EURUSD
pipette = a change of 0.0001
Yes, it seems you're correct. Slippage would be a major issue. Also, how can I setup mt4 to demone profit for PIP and not PIPETTES? It Appears all my transactions were calculated in pipettes,
You can't, its all or nothing with brokers... pipettes can also be called points... just do not count the final digit unless you truly care about the ten points between pips. . I do not mind. . You find a change in value for every single stage unless you've got a very small place. . It is just the minimal that price has to change to your broker to reflect its value. . As the position you exchange increases you may want to pay attention to these points. . State when it a dollar a stage or ten dollars a point... possibly more. Since disperse could be anywhere from 1.8 to 5 pips on your case or upward of 10 to 30 pips throughout major news releases, it's always better to know about exactly what the spread is until you put a transaction and is exactly what you give up on each entrance or exit depending on which course you are trading. (Short or Long). . Short entries you pay the disperse once the transaction is closed. In long entries you pay the spread upward front. .
And yes you were probably taking a look at the pipettes or points as Kilian19 said.
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