Percentage in point, price interest point, a pip; whatever you want to call it you must understand it. This is how money is made in the currency market. New traders in this type of financial market have a lot of studying to do. A shortcut would be to have one of those automated forex trading robots - get the pips.
Glossary of terms:
1. Pip. A pip in forex trading is what traders call the smallest price increment. It is a way to measure the profits and losses in a market that has no set currency. In a way, a pip virtually functions as currency. Because it is hard for beginners to grasp at first, there is what is called a forex pip calculator. After a while it becomes more understandable. It will then be easy to see why it is important to use the system of pips in the forex market.
2. Spread. This is the difference in pips between a chosen currency pair. Keeping an eye on the spread is how money is made in the forex market.
3. Forex robots. The software is designed to get the pips. It does this in a number of ways. 1st it offers a built in tutorial that helps beginners learn the principles of pips and spreads and everything else to understand the workings of the foreign exchange market. Then it can be configured to automatically keep an eye on the movements and perhaps make the trades for you.
This glossary of terms, then, explains how it is possible that automated forex trading robots - get the pips.
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