11/9-10........Monday $$$

Did a trade in the practice account and it was a good learning experience.

Sold short CHF at 1.184, bought to cover at 1.18275

So that meant 125 pips, it went much lower and the RSI was overbought on a 5 minute chart and it worked out.

What I didnt completely understand is a PIP is calculated differently per each currency, and based on this currency the return ended up being 125 or so.

The lower the currency vs the USD the higher the value in the pip it seems..so a 125 pip move in the Euro would have returned more, but then it is less volatile.

 

This confused me also, and still does a bit.

 

I think the difference lies in the JPY pip.  Since the JPY pairs are only to two decimal places 1 pip = .01 or 1% of the currency.  Whereas in USD pairs 1 pip = .0001 or 0.01% (one dollar) of currency

I read that you have to convert the PIP to the currency to get the $$$ value of the PIP.

LINK

One other thing I am not fully clear on is holding a trade overnight.  I believe, depending on which currency pair you are trading and the differences in those country interest rate, you will either have to pay or receive interest on what you hold.  Need to look into this more.

Well if you are on margin then you are paying vig on the margin, that is for sure. I dont know how you would get paid, if you figure that out let me know.

Sold 1 contract CHF at 1.186

Looks early but the sucker is way overbought and I think it comes down.