Forex Trading – Calculating Pip Values
Many novice Forex traders find it difficult to calculate their profit of loss on an open trading position with any speed and this is of course essential to their trading success. After all, knowing exactly where you stand in an open trade at any given moment can make the difference between closing out the trade in profit and closing it out at a loss. The secret lies simply in understanding pip values. A pip value represents the smallest movement of one currency against another and knowing how to calculate pip values for pairs of currencies will allow you to very quickly and easily make a calculation of your profit or loss in a trade as the currencies move in price against each other.
