Understanding Forex Pips

By Bart Icles

In Forex trading, a Pip or Percentage In Point or Price Interest Point, is the smallest change in price of a given exchange rate. New traders to the market should have a thorough understanding of the concept as they will encounter this term all the time when doing currency trading.

Since transactions in Forex involve very large sums of currency and Forex spreads are usually very small, currency pairs are quoted to the fourth decimal place to be accurate. This is what is known as a Pip, or the smallest change of a currency pair. Take for example the currency pair of USD/EUR, quoted at 1.2345 and changes to 1.2346, the change in Pip would be 1. And if it changes from 1.2345 to 1.2305, the corresponding Pip change would be 40 Pips. Presently, there are 6 widely-traded currency pairs or called the majors, which are the following:

* EUR/USD, also called the 'EURO" * GBP/USD, also called the "CABLE" * USD/CHF, also called the "SWISSIE" * USD/JPY, also called the "NINJA" * USD/CAD, also called the "LOONIE", or "BEAVER" * AUD/USD, also called the "AUSSIE"

The EUR/USD is the most traded major by an average of 100 Pips a day.

Also, profits and losses are measured in Pips, with the exception of the USD/JPY, since it is quoted at the second decimal place due to having a cent or of a hundredth in some major currencies. The yen's Pip value is .01, while other majors are placed at .0001.

If the price quote for the currency pair of USD/JPY is placed at 110.95, and changes to 111.0, then it has gained 5 Pips. In other currency pairs, such as the USD/CAD, a quote of 1.0234 moves to 1.0224, then it lost 10 Pips. A USD/JPY quote of 77.48 changed to 77.53, the Pip would be at 5 Pips increase. Trading with the AUD/USD with an exchange quote of 1.9876, the Pip equivalent is .0001.

Basically, when you hear someone say, "30 Pips", it denotes thirty units of value in trading. Individual currencies are not similarly quoted in terms of Pips, so it's best to review all the currencies you encounter during your trading. Dealing with large sums might seem daunting at times, but will get easier gradually as you begin to get acquainted with Forex trading as time passes.

Many other currencies besides the Yen have a four decimal place - those mainly paired with the USD at .0001. If you just keep in mind that a Forex Pip is one unit of the furthest listed decimal place, and that each currency pair is assigned a different value, then you'll be well on your way to becoming a future, successful trader. - 23305

About the Author:

Managed forex pro starts with a desire to learn and a drive to become a great trader. Learning mini forex trading platform takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Franklin Mint Silver Coins Galore

By George Hugo

The Franklin mint silver coin is one of the most popular coin-like collectibles manufactured by the Middletown Pennsylvania based company. Franklin mint operates as a private corporation which was founded back in 1960s.

The company was started by Joseph Segal who launched quite a few collectibles under the corporate brand name. For Americans it is considered a staple American brand, and is sought after by lower income classes.

The first item off the production line was the privately minted gold and silver commemorative medallions. Over the years the company launched more items for the collectors and buyers interested in Franklin mint collectibles.

However in the 1960s there was a shop in pleasing the value of Silver in the global market and it was removed from circulation in the domestic market. At this point casinos were using the silver dollar in slot machines but now the silver dollar was costing more than its actual value.

An official fact is that Franklin mint silver coins were used in the position of real silver dollar coins in casinos.

The Franklin mint factory in Pennsylvania had a production facility that could manage production of large quantity of coins, theme based medallions, and ingots. Those interested in Franklin mint collectibles could subscribe to a shipment plan and receive exceptionable collectible items as per the plan.

Even though the Franklin mint silver coins were the best sellers of the range, silver was not the only metal used to create the collectibles and the company ventured into producing coin like collectibles from different semiprecious and precious metals.

The unique themes of the coins allowed the company to broaden its customer base and produce some classic and different appealing designs. Some of the products were designed as a tribute to popular personalities.

The competitive pricing of the coins resulted in huge orders consequently contributing to their popularity.

The Mint went onto enhance the value of the collectibles by creating beautiful wooden cases in custom packing along with fancy elegant packing that further enhanced the presentation of the product. Special certificates were also issued for the individual pieces and established the authenticity and charm of the pieces.

Introducing the above mentioned qualities had the impact of raising the purchase price of Franklin Mint coins. As the company was introducing these features to make their products silver prices began to rise.

In order to remain competitive and still retain the appeal of the income group they were looking to target, the company had to look for alternative materials like pewter and bronze. However they were not as well finished with the sheen and sparkle of silver and these collectibles did not reach the popularity of the Franklin Mint Silver Coins. - 23305

About the Author:

Silver eagle coins make great gifts as they will increase in value with time. For more detailed guidance on buying Franklin Mint commemorative coins follow the above links.

Forex Autotrade Software

By Paul Bryan

The Forex market is the largest and is the most liquid market in the world. The daily trade exchange which takes place amounts to more than a trillion dollars, with trades taking place 24 x7.

Due to the recent increase of media interest, more and more people are turning to Forex trading every day. As well as the millions of people already trading, there are many more considering opening a trading account. However, be aware the Forex trading is not without risk.

Using some kind of a system for trading is very common amongst traders. Many of these have been developed by experts and then tweaked accordingly by each individual. However, most of these systems have the same drawback - they all need you to manually implement the trades. The face of Forex is trading though thanks to a range of automated forex trading software.

It is for this reason that computer programmers and Forex traders have teamed up to make the automatic Forex trading software that is designed to give you more liquidity in the direction of profit generation. This software is designed for allowing the traders to have an easy access to trading in the Forex market and at the same time help them enhance their strategies and trading system in a better way.

The first and foremost benefit of these tools is surely the advantage of getting to trade through a different source without bothering to trade all by yourself. All you need to do is just program the Forex trading software prior to a trading event according to your preferences. This will enable the traders to trade even if they are not in a position to monitor the markets at every point of time. The automated software will do the rest.

If you have other things to tend to such as work, family or friends then with automated software running you can do these things with no detriment to you trading success. In addition you can also set trades to happen whilst you sleep meaning you never miss an opportunity to make profit. All in all you trading can become better, more successful and less risky than trying to do things manually.

Furthermore it is a fact that as humans we are able to trade only certain amount of currency pairs at a time as it is mentally and physically not possible for us to handle several currency pairs at one particular point of time. But, the automatic trading software designed for Forex, enables you to deal with several currency pairs at a time and that too very efficiently.

The thing you must look out for is whether the software you are considering comes from a trusted company. The wrong choice could expose your risk and reduce the amount of profit you make. - 23305

About the Author:

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Basic Tips In Getting Your Own Valuable Penny Stock Pick

By Malcolm Torren

Balancing high expectations with the actual stocks being in trade can be quite a challenge for the new penny stock investor. It is no joke to be investing in penny stocks. But if you have the stamina to overcome your first quarter hurdle, you should be good for the next challenge.

This business runs on factual data or information coupled with rational conclusions. Even with the best penny stock pick can't compete with your decision.

However, once you master the basic moves, penny stock trading can be worth your investment. That is no myth and there are people who can tell you that it's even fun. So where do you start? Know the basics first. Here are five tips that are most important to get your excited.

- Do not buy shares from ambiguous claims. Of course you wouldn't buy a product in a grocery store if the label doesn't say much about its content, would you? There may be phone calls and emails you'll be getting saying stuff about penny shares that are up for grabs. Verify this claim first. Verify the source of the information too. It is important in your penny stock pick to have track records and an accurate stock price before you buy a penny share. The point is, don't buy if the information you need is not given completely.

- Consider the PE ratio principle. This is a bit technical for you if you are just a beginner. PE stands for price to earnings ratio. The basic definition is that it's the value being set by the stock market per dollar per share of a company's annual earnings. Conduct a thorough research on this to get a better understanding of how it can be applied to your decision making.

- Be wary of hyped penny shares. Although it is true that press releases can pump up the value of a penny stock. But there are scams involved in this part of the trade and hype is often the favorite game. You should be confident enough of your penny stock pick to not get influenced by other stock broker's opinion. Sure you'll need these brokerage firms but your analysis is what matters most.

- Advice is always helpful but only if there is credibility in it. You decided to throw in your investments in your penny stock pick because it is your personal decision to. That means whatever risk you have, loss or gain is all yours for the taking. If someone else gives you an advice, make sure that they have traded their own money and have a good track record of successful transactions.

Always make your own well-informed decisions. Nobody in the trading business can teach you penny stock wisdom. Nobody and that is a fact. Penny stock brokerage firms can give you advice and present you the hottest penny stock pick there is. Yes, that can be very helpful. But it's your money out there. Even the stock market doesn't own it. - 23305

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Get the best tips on how to choose a penny stock pick. Know more about investing in penny stock from the masters.

What Is Swing Trading? (Part I)

By Ahmad Hassam

Determining your trading style is very important right from the beginning. Not knowing what type of a trader you are can make or break your trading career. Take the analogy of a cricket team. There are 11 players in each team in the match. All players are talented and super fit. Everyone can throw and catch the ball. However some are more skilled at balling. Others are more skilled at batting. If the baller is going to do the job of the batter, not many runs will be made and the match will be lost.

In general there are three type of trading styles: Position trading, swing trading and day trading. Investing in the currency markets or stock markets is also the same. It depends on your personality makeup what type of trading is best suited to you. You need to know what type of trading style is for you.

For example, you expect the USD to strengthen against GBP in the coming six months. You buy currency call options on USD and currency put options on GBP. In currency trading, position trading means you are in a trade for many months trying to capitalize on a major long term move in the currency market. Options traders can also be position traders through covered calls and other options trading strategies. Position Trading is generally the buy and hold strategy employed by most people of investing in stocks over a long haul. Usually positions traders are in a trade for a large long term move like when you carry trade AUD/JPY.

Swing trading is possibly the most dynamic of the three types of trading as the swing trader is able to switch up holding times quickly as the market demands. Swing Trading means taking short term positions in anticipation of quick market movements over a series of days or weeks. Swing traders take advantage of technical and fundamental analysis.

Day trading is not easy. It is certainly not a hobby. In Day Trading, you attempt to capitalize on intraday movements with the markets often trading on momentum and news. Day traders are also known as Kings of Stress. Sometimes when the positions warrants holding for a longer period, day trading can become swing trading!

Day trading is ideal for those who are able to handle erratic market movements while actually also having time to monitor the positions throughout the day. You should note that if you dont have time to watch your trades every moment, you should not think of day trading. Day trading is the riskiest of the three trading styles.

Know That Swing Trading Is a Better Alternative to Day Trading Day trading hardly ever ends up well especially if the trader has no previous professional trading experience. Only 10% of the day traders succeed. Many people are attracted to the glamour and excitement of day trading. Most day trader usually blow up their accounts and fade away soon.

Swing trading can be on the other hand a much more effective trading style especially if you are a newer trader. By holding positions overnight and even for a few weeks, you can expose less money for larger moves. If you are a new trader, think about it for a moment. - 23305

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know Swing Trading! Learn Forex Trading.