i have a question? please help me out!!!

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i have a question? please help me out!!!

Postby famous » Sun Apr 10, 2011 11:53 pm

I'm a nebb and haven't starting to use forex yet but am very soon, I'm just trying to understand everything to no, my question is wen u have lets say a $1,000 in a account and lets say I made 50 pips and I use eur/usd in the trade, how much are the pips worth???? Please help me out!!!!
famous
 
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Re: i have a question? please help me out!!!

Postby muddeman » Tue Apr 26, 2011 6:26 am

famous wrote:I'm a nebb and haven't starting to use forex yet but am very soon, I'm just trying to understand everything to no, my question is wen u have lets say a $1,000 in a account and lets say I made 50 pips and I use eur/usd in the trade, how much are the pips worth???? Please help me out!!!!


When you trade in forex you have to say how much you want to stake per pip. So if you stake $2 per pip a 50 pip win would mean you have made $100.
If you have $1000 to trade with I would not stake more than $1 per pip initially as a 50 pip loss would mean a loss of $50, which is 5% of your trading account. Do not ever stake more than 5% or preferably no more 2% of your trading account on any one trade.
The best way to ensure you do not lose any more pips than you intend to is by placing a stop loss, which is an order to close your position at a specified point should the market move in the wrong direction.
Be very cautious and trade small amounts only to start with, otherwise you'll learn a very painful lesson and your account will be wiped out in no time!!
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