What is Point/Pips Values in Forex

Point/Pips Values in Forex

What is Point/Pips Values in Forex

Point/Pip values is the US$ value for each Point/Pip (these are definitely typical values that can also vary within the different Market and Brokers Makers)
Point or Pips is a rate change of one pip can be associated with the worthiness change of the right position in a currency market. Currency is typically traded in lot measurements of 100000units from the base currency. A trading position of a lot that experiences a rate change of 1 pip therefore modifications in value by 10 units from the quoted currency.

		Regular	Mini
Euro	=	$10	($1)
Pound	=	$10	($1)
Australian Dollar	=	$10	($1)
Swiss Franc CHF	=	$7.60	($0.76)
Canadian Dollar CAD	=	$7.30	($0.73)
Japanese Yen	=	$8.45	($0.85)

Major Market Participants

Traders include Governments Reserve Banks,
Large Mutual Funds,
Banks,
Companies,
Hedge Funds,
Individual Traders.

Fundamental or Technical

The two basic approaches to analyzing the currency market are Fundamental Analysis and Technical Analysis. The primary analyst concentrates on the underlying causes of price movements and the technical analyst studies the price tag movements themselves.

Fundamental Analysis

Fundamental analysis concentrates on the
economic
social
political
geopolitical forces These drive supply and demand.
Fundamental analysts look at various macroeconomic indicators such as
economic growth rates, interest levels, inflation,
unemployment, etc.
However, there is absolutely single number of beliefs that guide fundamental analysis. There are plenty of theories on how currencies needs to be valued. Refuse to aim to analyze the basics until you are a financial expert. Allow the experts accomplish this and follow their lead by reading the charts.
Take note when announcements are due.
Sometimes the pros are wrong and get caught by unpredictable actions.

Technical Analysis

Technical analysis focuses on the research of price movements. Historical currency information is familiar with forecast the direction of future prices. The premise of technical analysis would be that al current market info is already reflected into the price of that currency, therefore, studying price action is al that is required to create informed trading decisions.

The principal tools regarding the technical analyst are charts. Charts are accustomed to identify patterns and trends so to find profit opportunities. The most basic concept of technical anaysis would be that markets tend to trend. Being able to identify trends in their earliest sage of development is paramount to technical analysis.