All Forums | Investments

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

Participants:
Search model icon
Views: 1041
Posts: 108
 
Covers Linesmen
Participation Meter
Joined: Feb, 2003
Posts: 56849
Posted: #101
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.


 
Veteran
Participation Meter
Joined: Aug, 2007
Posts: 1162
Posted: #102
Quote Originally Posted by wallstreetcappers:

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

 
Covers Linesmen
Participation Meter
Joined: Feb, 2003
Posts: 56849
Posted: #103
I read that you have to convert the PIP to the currency to get the $$$ value of the PIP.

LINK
 
Veteran
Participation Meter
Joined: Aug, 2007
Posts: 1162
Posted: #104
That one dollar should read 'one unit" since it would depend on the type of account you are using
 
Veteran
Participation Meter
Joined: Aug, 2007
Posts: 1162
Posted: #105
Putting this here for reference...
 

(one pip, with proper decimal placement/currency exchange rate) x (Notional Amount)

Using USDJPY as an example, this yields:

  (.01/130.46) x USD10,000 = $0.77

  or 77 cents per pip

Using EURUSD as an example, we have:

  (.0001/.8942) x EUR10,000 = EUR 1.1183

But we want the pip value in USD, so we then must multiply EUR1.1183 x (EURUSD exchange rate):

  EUR 1.1183 x .8942 = $1.00

 
Veteran
Participation Meter
Joined: Aug, 2007
Posts: 1162
Posted: #106
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.
 
Covers Linesmen
Participation Meter
Joined: Feb, 2003
Posts: 56849
Posted: #107
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.  
 
 
Prospect
Participation Meter
Joined: Nov, 2007
Posts: 246
Posted: #108
 
 
WALL
 
   I think you were talking about the usd/chf pair. Selling it at 1.1840 and covering at 1.1827 would be a 13 pip profit. Minus the spread of course. I see buc gets 10$ per pip mostly and he likes to trade 2 lots. Dollar per pip does depend on what pair your trading. Glad to see you in here Wall. Im learning too   crazy stuff
but ole Buc seems to have a good eye for it
 
                                                             1iron
All Forums | Investments
About Us
Contact Us
Careers
Our Team
Brand
Testimonials
Betting Guides
Sportsbook Reviews
Sports Betting News
Podcasts
Responsible Gaming
Sports Betting
US Betting Sites
Canada Betting Sites
Canada Casinos
Best Betting Apps
Contests
Streak Survivor
King of Covers
Ultimate Race
Office Pools
The Covers community has
618,670
lifetime members worldwide
Covers 25 Years Logo Established in 1995,
Covers is the world
leader in sports
betting information.
Site Map Help Privacy Terms of Service youtube logo facebook logo twitter logo instagram logo linkedin logo google news logo
Covers is verified safe by: Evalon Logo GPWA Logo GDPR Logo GeoTrust Logo Evalon Logo
Copyright © 1995 - 2025 CS Media Limited All Rights Reserved.

If you choose to make use of any information on this website including online sports betting services from any websites that may be featured on this website, we strongly recommend that you carefully check your local laws before doing so.It is your sole responsibility to understand your local laws and observe them strictly.Covers does not provide any advice or guidance as to the legality of online sports betting or other online gambling activities within your jurisdiction and you are responsible for complying with laws that are applicable to you in your relevant locality.Covers disclaims all liability associated with your use of this website and use of any information contained on it.As a condition of using this website, you agree to hold the owner of this website harmless from any claims arising from your use of any services on any third party website that may be featured by Covers.