Trading forex

[kaveman]

I am trying to sort out in my head the trading of forex

the prices are quoted to 4 decimal places, or points (or pips)

you buy with $100 or your own money which gets you $10,000 worth of currency (margin 100:1)
So for every point change of the chart you lose/earn $1

eg
entry price 1.0000
exit price 1.0010
which is 10 point profit, so you get $10 profit for your $100 buy

Is this correct?

 

[mit]

I am trying to sort out in my head the trading of forex

the prices are quoted to 4 decimal places, or points (or pips)

you buy with $100 or your own money which gets you $10,000 worth of currency (margin 100:1)
So for every point change of the chart you lose/earn $1

eg
entry price 1.0000
exit price 1.0010
which is 10 point profit, so you get $10 profit for your $100 buy

Is this correct?

Depends on your broker. With CMC you can buy any amount from minimum around $10kUSD. The pip value is dependant on the currency. If you buy 6000 GBPUSD a pip is worth around 80 cents a pip. If you buy 12000 AUDUSD then it is over $2 a pip although I haven't checked for awhile as I only tend to trade GBPUSD and the amount's vary depending on the value of the AUD against the other currencies.

I think other brokers are more straightforward but are based on contracts. One contract is worth $100kUSD and each pip is worth $10USD. Many have mini contracts worth $1USD per contract.

Note that the Yen is only two decimal points.

MIT

 

[Smurf1976]

Personally I wouldn't be using leverage anywhere near that high. You'll almost certainly blow (empty) the account, probably quite quickly.

Take a look at https://www.aussiestockforums.com/forums/showthread.php?p=17788#post17788 but read the whole lot and judge for yourself in the debate involving myself versus Coinz.

I trade forex.

 

[mit]

Yes I'll second that. Drawdowns can be bad enough only risking 2% of your capital on each trade.

MIT
(Currently in Drawdown )

 

[Beachie41]

I am trying to sort out in my head the trading of forex

the prices are quoted to 4 decimal places, or points (or pips)

you buy with $100 or your own money which gets you $10,000 worth of currency (margin 100:1)
So for every point change of the chart you lose/earn $1

eg
entry price 1.0000
exit price 1.0010
which is 10 point profit, so you get $10 profit for your $100 buy

Is this correct?

Graham, log onto http://fxtrade.oanda.com & read/ask ???'s on the forum http://fxtrade.oanda.com/resources/forums.shtml. A lot of of good info there. Quite a few Ozzies trading there. One being ~chaffcombe http://users.bigpond.com/morleym/