1 dollar forex trading

Your FOREX.Com account gives you access to our full suite of downloadable, web, and mobile apps.

Top-3 forex bonuses

Trade with the No, 1 dollar forex trading.

Let’s create a trading plan that will help you stay on track and meet your goals.

Trade with the no. 1 broker in the US for forex trading*

Why are traders choosing FOREX.Com?

No. 1 FX broker in the US*

We have served US traders for over 18 years.

Trade 80+ FX pairs, and gold & silver

Global opportunities 24/5 with flexible trade sizes.

EUR/USD as low as 0.2

Trade your way with flexible pricing options including spread only, spread + fixed commission, or STP pro.

*based on client assets per the 2019 monthly retail forex obligation reports published by the CFTC

Financial strength you can depend on

Your FOREX.Com account gives you access to our full suite of downloadable, web, and mobile apps.

Get 20 free, easy to install eas and custom indicators when you open a metatrader live or demo account.

* based on active metatrader servers per broker, apr 2019.

Reward yourself with our active trader program

Save up to 18% with cash rebates as high as $9 per million traded

Interest paid up to 1.5% on your average daily available margin balance

Get guidance and priority support from your dedicated market strategist

No bank fees for wires

Access to exclusive events and product previews

Open an account in as little as 5 minutes

Tell us about yourself

Fund your account

Start trading

Ready to learn about forex?

New trader?

Welcome, we’ll show you how forex works and why you should trade it.

Have some experience?

Let’s create a trading plan that will help you stay on track and meet your goals.

Want to go deep on strategy?

Great, we have guides on specific strategies and how to use them.

Not sure where to start?

Take our short quiz and get matched resources that fit your trading style.

How do you make money trading currencies?

Investors can trade almost any currency in the world through foreign exchange (forex). In order to make money in forex, you should be aware that you are taking on a speculative risk. In essence, you are betting that the value of one currency will increase relative to another. The expected return of currency trading is similar to the money market and lower than stocks or bonds. However, it is possible to increase both returns and risk by using leverage. Currency trading is generally more profitable for active traders than passive investors.

Key takeaways

It is possible to make money trading money when the prices of foreign currencies rise and fall.

Currencies are traded in pairs.

Buying and selling currency can be very profitable for active traders because of low trading costs, diverse markets, and the availability of high leverage.

Exchanging currency is not a good way for passive investors to make money.

It is easy to get started trading money at many large brokerages and specialized forex brokers.

Buying and selling currency explained

It is important to note that currencies are traded and priced in pairs. For example, you may have seen a currency quote for a EUR/USD pair of 1.1256. In this example, the base currency is the euro. The U.S. Dollar is the quote currency.

In all currency quote cases, the base currency is worth one unit. The quoted currency is the amount of currency that one unit of the base currency can buy. Based on our previous example, all that means is that one euro can buy 1.1256 U.S. Dollars. An investor can make money in forex by appreciation in the value of the quoted currency or by a decrease in value of the base currency.

How do you make money trading money?

Another perspective on currency trading comes from considering the position an investor is taking on each currency pair. The base currency can be thought of as a short position because you are "selling" the base currency to purchase the quoted currency. In turn, the quoted currency can be seen as a long position on the currency pair.

In our example above, we see that one euro can purchase $1.1256 and vice versa. To buy the euros, the investor must first go short on the U.S. Dollar to go long on the euro. To make money on this investment, the investor will have to sell back the euros when their value appreciates relative to the U.S. Dollar.

For instance, let's assume the value of the euro appreciates to $1.1266. On a lot of 100,000 euros, the investor would gain $100 ($112,660 - $112,560) if they sold the euros at this exchange rate. Conversely, if the EUR/USD exchange rate fell from $1.1256 to $1.1246, then the investor would lose $100 ($112,460 - $112,560).

Advantages for active traders

The currency market is a paradise for active traders. The forex market is the most liquid market in the world. Commissions are often zero, and bid-ask spreads are near zero. Spreads near one pip are common for some currency pairs. It is possible to frequently trade forex without high transaction costs.

With forex, there is always a bull market somewhere. The long-short nature of forex, the diversity of global currencies, and the low or even negative correlation of many currencies with stock markets ensures constant opportunities to trade. There is no need to sit on the sidelines for years during bear markets.

Although forex has a reputation as risky, it is actually an ideal place to get started with active trading. Currencies are generally less volatile than stocks, as long as you don't use leverage. The low returns for passive investment in the forex market also make it much harder to confuse a bull market with being a financial genius. If you can make money in the forex market, you can make it anywhere.

Finally, the forex market offers access to much higher levels of leverage for experienced traders. Regulation T sharply limits the maximum leverage available to stock investors in the united states. it is usually possible to get 50 to 1 leverage in the forex market, and it is sometimes possible to get 400 to 1 leverage. This high leverage is one of the reasons for the risky reputation of currency trading.

New forex traders should not use high leverage. It is best to start using little or no leverage and gradually increase it as profits and experience grow.

Disadvantages for passive investors

Passive investors seldom make money in the forex market. The first reason is that returns to passively holding foreign currencies are low, similar to the money market. If you think about it, that makes sense. When U.S. Investors buy euros in the forex market, they are really investing in the EU's money market. Money markets around the world generally have low expected returns, and so does forex.

The benefits of the forex market for active traders are usually useless or even harmful for passive investors. Low trading costs mean very little if you do not trade very much. Using high leverage without a stop-loss order can lead to large losses. On the other hand, using stop-loss orders essentially turns an investor into an active trader.

Getting started with forex

The forex market was once much less accessible to average investors, but getting started is easy now. Many large brokerages, such as fidelity, offer forex trading to their customers. Specialized forex brokers, such as OANDA, make sophisticated tools available to traders with balances as low as one dollar.

Trading strategy

Trading strategy is currently based on emas (exponential moving average), japanese candlestick charting techniques, fundamental background and price action. Sentiment index also can be a very valuable tool for intraday currency trading. The index is based on transaction flow information and is designed to show long and short ratio in the most popular currency pairs.

Average trading lot is equal to equity divided to 500 – 1000 pips (for example for 1K equities, an average trading lot would be 10 000 or 20 000 units of the base currency (USD)).

Trading strategy does not preclude the possibility of drawdown. Maximum projected drawdown excluding expenses: 50% (for instance if an intomillion had a 50% drawdown that means at one point he lost 50% of the account value).

Trading needs to be treated like a business. Intomillion is aware of margin trading risk, and carefully plans his trades in order to minimize the risks to trading capital. There are specific steps that an intomillion can takes to minimize the risks involved in forex trading, particularly involving safe ways to use the margin. Even with implementing risk management tools, the risks of trading forex remain substantial. Therefore almost all trades are based on what the market is telling and strategy involves only human decision-making for entering and exiting trades (do not uses STOP and LIMIT orders).

Please be informed about HIGH RISK below on this page!

Trade with the no. 1 broker in the US for forex trading*

Why are traders choosing FOREX.Com?

No. 1 FX broker in the US*

We have served US traders for over 18 years.

Trade 80+ FX pairs, and gold & silver

Global opportunities 24/5 with flexible trade sizes.

EUR/USD as low as 0.2

Trade your way with flexible pricing options including spread only, spread + fixed commission, or STP pro.

*based on client assets per the 2019 monthly retail forex obligation reports published by the CFTC

Financial strength you can depend on

Your FOREX.Com account gives you access to our full suite of downloadable, web, and mobile apps.

Get 20 free, easy to install eas and custom indicators when you open a metatrader live or demo account.

* based on active metatrader servers per broker, apr 2019.

Reward yourself with our active trader program

Save up to 18% with cash rebates as high as $9 per million traded

Interest paid up to 1.5% on your average daily available margin balance

Get guidance and priority support from your dedicated market strategist

No bank fees for wires

Access to exclusive events and product previews

Open an account in as little as 5 minutes

Tell us about yourself

Fund your account

Start trading

Ready to learn about forex?

New trader?

Welcome, we’ll show you how forex works and why you should trade it.

Have some experience?

Let’s create a trading plan that will help you stay on track and meet your goals.

Want to go deep on strategy?

Great, we have guides on specific strategies and how to use them.

Not sure where to start?

Take our short quiz and get matched resources that fit your trading style.

Forex minimum deposit

Find below a list of forex brokers according to the minimum deposit for opening a forex trading account with low deposit.

Risk warning: your capital is at risk. Cfds are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 58-89% of retail investor accounts lose money when trading cfds. You should consider whether you understand how cfds work and whether you can afford to take the high risk of losing your money. Please be advised that certain brokers, products, bonus and/or leverage may not be available for traders from some countries due to legal restrictions.

Trading with a small deposit

It is quite common that traders start to spend time on demo account, then, once they gain experience, some want to start real trading with a low deposit forex account without a large investment or putting substantial assets at risk. It is quite convenient by investing little money because emotions need practice.

Some brokers operate different business models where some operate a large customer base, while others have few high net-worth investors who can bring in large volumes of cash. High net-worth investors could me more interested in brokers having a high minimum deposit.

Risk warning: investments involve a high level of risk. It is possible to lose all your capital. Cfds are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 58-89% of retail investor accounts lose money when trading cfds. You should consider whether you understand how cfds work and whether you can afford to take the high risk of losing your money.

The information on this site is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation and is not directed at residents of: belgium · france · japan · latvia · turkey · united states ·

A million USD forex strategy (part 1)

In this article, we will reveal popular long-term strategies. It is called, "a million USD forex strategy." I know that all forex traders, including myself, are especially fond of trading strategies. This is a very simple, yet highly effective and profitable trading strategy.

Best yet: I will be giving away all the details of this strategy for FREE of charge. That is the kind of thing we do here at trading strategy guides!
I do have one favor I want to ask from you.

In exchange for the free strategy, I would like to ask you if you could take the time to write a comment down below… I would really appreciate that!
Also, don’t forget to add us to twitter. We send our great content day in day out so it would benefit you tremendously.

T he million strategy

At trading strategy guides, we know that some of you who are reading this ebook do not have hours and hours a day to track the forex market. Everyone has busy lives and full schedules.

This strategy is going to focus on long-term trading so that the method is beneficial for everyone.

But it is important to realize that the strategy is actually useful for all types of traders, from swing traders to day traders, but even intra-day traders can benefit from the knowledge.

The first thing you need to do is check out this long-term trading strategy article from nathan called “long-term-trading-strategy-for-forex".

Now that you have done that, let me tell you some more details.

1) because the strategy is classified as a long-term strategy, it was obvious that it needs to be an “end of day” strategy. So we will be using the day and weekly charts.
2) also, we really didn’t want to create something that takes a ton of time to analyze. So another requirement is that the strategy uses very simple methods.

My mission succeeded: the strategy only requires a few minutes of your time every day and is straightforward.

Here is an example:

that is all a forex trader needs. As you see the chart is very basic:
1 fibonacci;
1 indicator (fractal indicator).

Because in a way, the only aspects forex traders need to care about is where do I enter, where do I set my stop loss and where is my take profit? And that’s it!
This strategy answers all 3 questions quickly - without having to stare at your screens for 24 hours a day. This free forex trading strategy meets all these criteria and more:

It only takes a few minutes a day to monitor the potential setups and any actual trades;

It requires none or very few indicators as to keep the chart simple;

The strategy is simple and straightforward;

The strategy is effective and profitable;

The day chart is used as to allow for end of day trading decisions.

The motto of our company is to provide you an edge. By reading this strategy article, you just created that edge for yourself. Read more about forex trading indicators,

Before we dive into the exact details of the strategy, I need to make sure that everyone has a certain understanding of forex trading. So I want to share with you a few links. Please read the ones that are valid and interesting for you:
1) how to trade forex.
2) forex strategy basics.
3) before you trade have a plan.

It is a very powerful trading system that will be a great addition to your forex trading arsenal.
Please read on for the details of the trading plan. In the next part, you will be able to discover the ins and outs of the setup, entry, stop placement, and trade management.

The ABC of the strategy

First of all, the strategy is feasible and usable for all major currency pairs and major crosses.

The currencies love to move in cycles, patterns, and waves from level to level. As we all know, there are many kinds of levels in the markets: examples vary from trend lines to consolidation zones.

Lows and highs are also examples of key levels. Their big advantage is that their numbers are clear and straightforward leaving little doubt and room for error. A day high will remain a day high no matter what. There is no doubt about their validity and are very easy to use for any measurement or strategy.

PLUS the big advantage is that BANKS use these levels as well. One simple word of advice from one trader to another is: avoid going long close to a daily high and going short close to a daily low. But this is not the strategy of course.

The next step in the process is… creating an edge. And not such any kind of edge.

The winner’s edge

That edge will be created via our filters. You might be asking yourself: why do we need a filter?
In fact, a trader could take a trading decision based on every single candle. But is it profitable?
Most likely not! That is why we are releasing this free forex trading strategy guide book.
A filter makes sure that we only trade upon a certain set of conditions, which gives us forex traders that edge.
The edge we are looking for in the strategy is to catch a currency when it is

A) either going to make a trend continuation or
b) either going to make a substantial trend reversal.

In other words, this strategy is aimed at finding turning or continuation spots on the daily chart.

That sounds very simple… and, it is.

Before we move on, make sure to read these vital articles:
1) the process of trading;
2) trying a new strategy.

The juicy part

So now you might be wondering, how do identify those continuation or reversal spots within our forex strategy? We thought you’d never ask!

We can measure a pause in the market by monitoring the highs and lows of the day candles and keeping track of whether and when it fails to make a new candle high or low. If the currency fails to make a new high or low, it equals a minor resistance or support level in the market.

Here is the definition:
in an uptrend a pause of one day (no new daily high) is equal to a minor resistance;
in an uptrend a pause of two days (no new daily high) is equal to a major resistance;
in a downtrend a pause of one day (no new daily low) is equal to a minor support;
in a downtrend, a pause of two days (no new daily low) is equal to a major support.

These minor or major support and resistance levels are great trading opportunities because they indicate either a potential trend continuation trade or a trend reversal setup.

Now we have formulated the definition of a trend:
A trend is when the currency makes new highs or new lows;
A temporary halt of the trend is when the currency fails to make a new high or low.

At this stage I advise you to read these great articles before continuing:
1) the best trading system.
2) forex trading system.

Catching the pips!

You are probably wondering how do we catch the pips! Hang on for the ride traders! This is a great forex trading strategy so you will not be disappointed.We also have training for building a foundation before a forex strategy matters.

The first thing we need to know is that; a failure to post a new candle high or low means that the power in the currency was not sufficient to push the price to new highs or lows.

Basically, this could translate into two scenarios:
the currency is pausing for a continuation of original trend direction;
the currency is setting itself for a reversal.
The great thing is, forex traders can profit from both directions!

That is the best thing about forex trading. There is earning potential both ways. So no matter what, forex traders can capitalize on movements on the forex market: up or down.

As you can see in the example below, the currency kept making higher highs and higher lows and made a fantastic uptrend (indicated by the green circles). The triangles within the green circles are an indication when 2-day candles did not post a new high or new low, aiding visual ease to identify a string of highs and lows – in this case, higher highs and higher lows.

Here below is another example when the currency kept making lower lows. There were several pauses and 2-day candles could not post a new low. After a small retracement, the currency continued with its downtrend.

So far we have covered all the basics. Before we dive into all the details of the actual trade setups and trade management details, I need to make sure that everyone is clear on the following matters as well:
1) introduction to forex trading for beginners
2) ultimate guide to forex trading investments.
3) forex trading seminar.
4) forex income.
5) trading the forex.
6) forex day trading.
7) forex indicators

Make sure to keep an eye out for part 2, which will be released next week friday on may 24. Here is information on gold investments.
We are going to discuss the forex strategy in great detail:
1) the with the trend trade setup
2) the counter-trend trade setup
3) the filters
4) where to place entries, exits, take profit
5) trade management

Then the week after we will release part 3 of the forex strategy (friday, june 1) which will provide some great bonuses for this strategy and will be the extra cream on top of the cake!

Once again, I would truly appreciate your feedback on each of these articles!!

Hope you enjoyed it, and make sure to read the next 2 sections which are going to be AWESOME.

Wish you good trading today and a very great weekend!

Trading scenario: what happens if you trade with just $100?

What happens if you open a trading account with just $100?

Or €100? Or £100?

Since margin trading allows you to open trades with just a small amount of money, it’s certainly possible to start trading forex with a $100 deposit.

But should you?

Let’s see what can happen if you do.

In this trading scenario, your retail forex broker has a margin call level at 100% and a stop out level at 20%.

Now that we know what the margin call and stop out levels are, let’s find out if trading with $100 is doable.

If you have not read our lessons on margin call and stop out levels, hit pause on this lesson and start here first!

Step 1: deposit funds into trading account

Since you’re a big baller shot caller, you deposit $100 into your trading account.

You now have an account balance of $100.

This is how it’d look in your trading account:

Long / short	FX pair	position size	entry price	current price	margin level	equity	used margin	free margin	balance	floating P/L
–	$100	–	$100	$100	–

Step 2: calculate required margin

You want to go short EUR/USD at 1.20000 and want to open 5 micro lots (1,000 units x 5) position. The margin requirement is 1%.

How much margin (“required margin“) will you need to open the position?

Since our trading account is denominated in USD, we need to convert the value of the EUR to USD to determine the notional value of the trade.

The notional value is $6,000.

Now we can calculate the required margin:

Assuming your trading account is denominated in USD, since the margin requirement is 1%, the required margin will be $60.

Step 3: calculate used margin

Aside from the trade we just entered, there aren’t any other trades open.

Since we just have a SINGLE position open, the used margin will be the same as required margin.

Step 4: calculate equity

Let’s assume that the price has moved slightly in your favor and your position is now trading at breakeven.

This means that your floating P/L is $0.

Let’s calculate your equity:

The equity in your account is now $100.

Step 5: calculate free margin

Now that we know the equity, we can now calculate the free margin:

The free margin is $40.

Step 6: calculate margin level

Now that we know the equity, we can now calculate the margin level:

The margin level is 167%.

At this point, this is how your account metrics would look in your trading platform:

Long / short	FX pair	position size	entry price	current price	margin level	equity	used margin	free margin	balance	floating P/L
–	$100	–	–	$100	–
short	EUR/USD	6,000	1.20000	1.20000	167%	$100	$60	$40	$100	$0

EUR/USD rises 80 pips!

EUR/USD rises 80 pips and is now trading at 1.2080.

Let’s see how your account is affected.

Used margin

You’ll notice that the used margin has changed.

Because the exchange rate has changed, the notional value of the position has changed.

This requires recalculating the required margin.

Whenever there’s a change in the price for EUR/USD, the required margin changes!

With EUR/USD now trading at 1.20800 (instead of 1.20000), let’s see how much required margin is needed to keep the position open.

Since our trading account is denominated in USD, we need to convert the value of the EUR to USD to determine the notional value of the trade.

The notional value is $6,040.

Previously, the notional value was $6,000. Since EUR/USD has risen, this means that EUR has strengthened. And since your account is denominated in USD, this causes the position’s notional value to increase.

Now we can calculate the required margin:

Notice that because the notional value has increased, so has the required margin.

Since the margin requirement is 1%, the required margin will be $60.40.

Previously, the required margin was $60.00 (when EUR/USD was trading at 1.20000).

The used margin is updated to reflect changes in required margin for every position open.

In this example, since you only have one position open, the used margin will be equal to the new required margin.

Floating P/L

EUR/USD has risen from 1.20000 to 1.2080, a difference of 80 pips.

Since you’re trading micro lots, a 1 pip move equals $0.10 per micro lot.

Your position is 5 micro lots, a 1 pip move equals $0.50.

Since you’re short EUR/USD, this means that you have a floating loss of $40.

Equity

Your equity is now $60.

Free margin

Your free margin is now $0.

Margin level

Your margin level has decreased to 99%.

The margin call level is when margin level is 100%.

Your margin level is still now below 100%!

At this point, you will receive a margin call, which is a WARNING.

Your positions will remain open BUT…

You will NOT be able to open new positions as long unless the margin level rises above 100%.

Account metrics

This is how your account metrics would look in your trading platform:

Long / short	FX pair	position size	entry price	current price	margin level	equity	used margin	free margin	balance	floating P/L
–	$100	–	$100	$100	–
short	EUR/USD	5,000	1.20000	1.20000	167%	$100	$60	$40	$100	$0
short	EUR/USD	5,000	1.20000	1.2080	99%	$60	$60.40	-$0.40	$100	-$40

EUR/USD rises another 96 pips!

EUR/USD rises another 96 pips and is now trading at 1.2176.

Used margin

With EUR/USD now trading at 1.21760 (instead of 1.20800), let’s see how much required margin is needed to keep the position open.

Since our trading account is denominated in USD, we need to convert the value of the EUR to USD to determine the notional value of the trade.

The notional value is $6,088.

Now we can calculate the required margin:

Notice that because the notional value has increased, so has the required margin.

Previously, the required margin was $60.40 (when EUR/USD was trading at 1.20800).

The used margin is updated to reflect changes in required margin for every position open.

In this example, since you only have one position open, the used margin will be equal to the new required margin.

Floating P/L

EUR/USD has now risen from 1.20000 to 1.217600, a difference of 176 pips.

Since you’re trading 5 micro lots, a 1 pip move equals $0.50.

Due to your short position, this means that you have a floating loss of $88.

Equity

Your equity is now $12.

Free margin

Your free margin is now –$48.88.

Margin level

Your margin level has decreased to 20%.

At this point, your margin level is now below the stop out level!

Account metrics

This is how your account metrics would look in your trading platform:

Long / short	FX pair	position size	entry price	current price	margin level	equity	used margin	free margin	balance	floating P/L
–	$100	–	$100	$100	–
short	EUR/USD	5,000	1.20000	1.20000	167%	$100	$60	$40	$100	$0
short	EUR/USD	5,000	1.20000	1.20800	99%	$60	$60.40	-$0.40	$100	-$40
short	EUR/USD	5,000	1.20000	1.21760	20%	$12	$60.88	-$48.88	$100	-$88

Stop out!

The stop out level is when the margin level falls to 20%.

At this point, your margin level reached the stop out level!

Your trading platform will automatically execute a stop out.

This means that your trade will be automatically closed at market price and two things will happen:

Your used margin will be “released”.

Your floating loss will be “realized”.

Your balance will be updated to reflect the realized loss.

Now that your account has no open positions and is “flat”, your free margin, equity, and balance will be the same.

There is no margin level or floating P/L because there are no open positions.

Let’s see how your trading account changed from start to finish.

Long / short	FX pair	position size	entry price	current price	margin level	equity	used margin	free margin	balance	floating P/L
–	$100	–	$10,000	$100	–
short	EUR/USD	5,000	1.20000	1.20000	167%	$100	$60	$40	$100	$0
short	EUR/USD	5,000	1.20000	1.20800	99%	$60	$60.40	-$0.40	$100	-$40
short	EUR/USD	5,000	1.20000	1.21760	20%	$12	$60.88	-$48.88	$100	-$88
–	$12	–	$12	$12	–

Before the trade, you had $100 in cash.

Now after just a SINGLE TRADE, you’re left with $12!

Not even enough to pay for one month of netflix!

You’ve lost 88% of your capital.

And with EUR/USD moving just 176 pips!

Moving 176 pips is nothing. EUR/USD can easily move that much in a day or two. (see real-time EUR/USD volatility on marketmilk™)

Congratulations! You just blew your account! ��

Since your account balance is too low to open any new trades, your trading account is pretty much dead.

How to read pips on gold

Gold is one of the most common and rewarding metals you can choose to trade. With the right trading strategy and spread-betting platform, trading gold more or less resembles forex trading.

Gold trading strategies are diverse and mostly encompass fundamental, sentimental, and technical analysis. Gold is usually priced in US dollars, which helps in market analysis. Therefore, we will look at the reasons you should trade gold and some of the strategies that you can exhaust for maximum returns.

One of the biggest problems for new traders is calculating pips for gold and calculating pip value for gold.

Pips in gold
A 1 pip, minimum change in the price of a currency pair, is a price movement of 0.0001, so most brokers (all MT4 and MT5 brokers) calculate a $0.01 pip cost on gold. Calculating pips for gold is a process we need to calculate in the first step number of pips. For gold or XAUUSD, 1 pip has a value of 0000.01 for 5 digits brokers, but it is different for 4 digits brokers. How to read pips on gold, then?

If we trade gold on the metatrader platform, then 1 micro lot trading size for 100 pips is $1. If we buy 1 micro lot from 1693.00 to 1694.00, it is $1 or 100 pips. If we buy 1 mini lot from 1693.00 to 1694.00, it is $10 or 100 pips. If we buy 1 lot from 1693.00 to 1694.00, it is $100 or 100 pips.

XAUUSD pip count	pip value per 1 standard lots	pip value per 1 mini lot
XAUUSD	1 USD	0.10 USD
XAUEUR	1 EUR	0.10 EUR

When we trade the gold, instead of calculating the number of pips, XAUUSD pip count, we ask how many cents (dollars) XAUUSD or gold is going up or down. In metatrader, traders calculate gold pips based on dollars and lots.

Watch video how to calculate pips for XAUUSD below:

It is easy to calculate the dollar for gold trading when we change the number of pips and the number of lots.

How to calculate gold pips in forex when gold is traded in ounces?
Gold is traded in ounces where 1 ounce of gold (XAUUSD) is 1000 units or 1 micro lot with a pip value of $0.01. Based on that, 10 ounces of gold are 10,000 units or 1 mini lot with a pip value of $0.1. Finally, 100 ounces of gold are 100,000 units or 1 standard lot with a pip value of $1.

If we trade gold on different platforms than metatrader, where trading is not in lots than in ounces (oz), then we have:
*for gold: position value in GBP / price of gold / 100 oz = volume or contract size in lots
*for silver: position value in GBP / price of silver / 5000 oz. = volume or contract size in lots

To give an example:
*for gold as example: £50000 / 1293.40 / 100 oz = contract size of 0.38 lot
*for silver as an example: £50000 / 19.5340 / 5000 oz. = contract size of 0.51 lot.

Similarly, crude oil pips can be calculated, as we described in our article.

So, how to count pips on gold? The best way to count pips on gold on metatrader is to remember that $1 is 1 micro lot for 100 pips target.

Why trade gold?

Times have changed, and so has the gold trade. Before, traders had to buy the metal and later resell it, which proved challenging. Futures and options were then introduced, where traders traded without ending up with a full set of different valuables. As time progressed, gold exchange-traded funds came, which made trading more comfortable. Gold traders traded gold in the same way stocks are sold in the forex market. What we have now is by far the best approach to the gold trade. Nowadays, the gold trade and forex trade are more or so similar.

Spread-betting platforms have made gold trading one of the most straightforward ventures. Like currency trade, all you have to do is buy or sell, depending on the price predictions. One of the advantages of the gold trade is that, unlike the currency, you are dealing with a physical commodity. Another reason why you should trade gold is that it is mainly used as a store of value. Unlike currency, it is not subject to a lot of government regulations.

Trading strategies

There are several strategies you can employ when trading gold. Some of the most common include studying the market forces, positioning of gold traders, the technical analysis, which is quite demanding and using a gold chart in the analysis. However, the best strategy is incorporating all the strategies, which means a combination of technical analysis, fundamental analysis, sentiment analysis, and the gold chart.

The sentimental analysis allows traders to spot trends, whereas the gold table determines when to enter and exit a trade.

Advantages of trading gold over forex

Gold trading has its fair share of advantages that forex trade cannot meet. One, gold is not affected by the government’s financial controls or central bank regulations since it is mostly used as a value store. This means that gold is rarely affected by inflation, which is one reason why many currencies have been rendered worthless.

Gold can also be used as a safe and another vital asset, including treasury bonds and currencies such as the japanese yen and the swiss franc. Instead of worrying about risky trends, a trader can rest easy by acquiring gold and other assets. You can also sell these assets when the risk appetite grows instead of going for stocks and currencies with unfavorable interest rates.

Gold is actively traded 24 hours a day, which gives it an edge over foreign exchange. In forex trading, different markets close after new york closes, reducing trade volume and, consequently, price movements that the traders can take advantage of. Gold exchanges happen all the time, which gives this precious metal high liquidity.

Trading gold is cheaper as compared to currency trade because it heavily leans on market liquidity. Gold records the highest trading volume compared to all the currency pairs. There is also a small difference between buying and selling prices.

What you need to keep in mind

Gold, unlike the assets associated with it, is mostly traded against the US dollar, which implies that the value of the dollar will indirectly influence the price of gold. When there is an increase in the value of the US dollar, the cost of gold falls.

Gold trading strategies

Technical analysis

Technical analysis is one of the most common gold trading techniques. It entails studying the gold chart and identifying the changes in market conditions. The period between 2005-2015 recorded a sizeable trend. However, from 2015, gold has recorded a predictable range, mostly $400. The best approach for trending markets is to use a momentum strategy, whereas a range strategy suits a range-bound market.

How do I use the technical analysis technique?

The best way for a beginner is to take advantage of the former highs and lows in the gold chart and the trendlines, and the chart patterns. One should note a rise above the current level during an increase in price and a fall above the current during a price decrease. To establish resistance, look at the line connecting the previous highs for an uptrend.

For a downtrend, look out for the lines connecting the former lows. Since technical analysis also requires taking note of the chart patterns, do not miss the tops’ double bottoms. As you progress in the technical analysis method, feel free to incorporate momentum indicators and more challenging prediction techniques.

Tips that you can take advantage of when trading gold.

There are tips that you can exhaust for maximum returns, whether you are a beginner or an advanced gold trader. For the fundamental analysis technique, a beginner should consider the market sentiment and the direction it is likely to move. Positive movement signifies a fall in prices, and a negative change rise in price.

An advanced trader should also consider the dollar on top of the market sentiment analysis. Since gold’s dollar price has stayed stable over time, such a trader can buy gold when political factors tend to threaten and then sell later. Such traders should also take note of the output figures from the primary gold companies.

You should also apply the forex trading tips. Factors such as risk management, targets, and leveraging should be taken into account. Before buying gold, make sure that you consider the industrial demand for gold and gold jewelry. It would be best if you looked out for the central bank too.

Gold trading insurance -market leading insurance

When you trade gold, it is important to trade using regulated forex brokers like hotforex that has made efforts to safeguard its liabilities against clients and other third parties with a civil liability insurance program for a limit of €5,000,000, which includes market-leading coverage against risks such as errors, fraud, omissions, negligence.

Gold pip calculator

The gold pip calculator is presented below. Please add size and the number of gold pips to see the worth in dollars:

Trading gold in different ways

As we have mentioned earlier that you can always trade gold physically. But, if you are planning to do it electronically, there are different ways of doing that. You can trade gold etfs or exchange-traded funds, gold cfds, gold futures contracts, and more. If you are doing electronic trading, you need to find a good trading platform to enter a trade and make a profit. If you plan to do it in a big volume or are new to it, it is advisable to work alongside a broker.

Conclusion

When we trade gold, the crucial thing is that we need to know to calculate pips for gold and calculate profit in dollars because it is not the same as we trade forex. You should, however, make some considerations before buying and selling gold. Me sure, therefore, that you use both the fundamental, sentimental, and technical analysis techniques.

How to calculate pips

Jay hawk

Contributor, benzinga

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Pip is one word you’ll likely hear in any conversation about forex trading. One of the first subjects you’ll learn in most forex trading courses is just what a pip is and how to calculate pips.

A pip is an acronym for point in percentage and it represents the smallest whole unit of movement in a currency pair’s exchange rate.

What does pip value mean?

The “pip value” of a given trading position is its change in value due to a one-pip move in the relevant foreign exchange rate, all other factors remaining equal. The currency that a pip’s value is expressed in should be your account’s base currency. This means the numeric pip value of a position can vary depending on which base currency you specify when you open an account.

If you trade in an account denominated in a specific currency, the pip value for currency pairs that do not contain your accounting currency are subject to an additional exchange rate. This is due to the fact that you need to convert pip value into your accounting currency to compare it with the pip value of your other positions.

In practice, this means that the numerical pip value for a trade in EUR/GBP, for example, will generally be higher than for pairs with the U.S. Dollar as the base currency because the pound sterling (GBP) trades at a higher relative value than the U.S. Dollar.

This also means that trading EUR/GBP in a single full lot of 100,000 euros can have a more capital-intensive effect on the margin required to hold that position than, for example, trading a one lot of $100,000 of the U.S. Dollar against the mexican peso or USD/MXN.

Due to the mexican peso’s low value, the pip value for a $100,000 or full lot trade in USD/MXN is only about $0.53 compared to $13.17 for a full lot of 100,000 euros in EUR/GBP.

Step-by-step calculation with examples

Step 1: determine the pip size. It is 0.0001 for all currency pairs other than those that contain the japanese yen when it is 0.01 due to the relatively low value of the japanese yen.

Step 2: determine the exchange rate.

Step 3: use this general formula for calculating the pip value for a particular position size:

Pip value = (pip size / exchange rate) x position size

Step 4: convert the pip value into your accounting currency using the prevailing exchange rate.

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Pip value calculations examples

Keep reading to understand how to calculate pips across different currencies.

1. For pairs with the U.S. Dollar as the counter currency

The same pip values apply to all currency pairs with the U.S. Dollar traded as the counter currency in an account denominated in U.S. Dollars. Major currency pairs such as EUR/USD, GBP/USD, AUD/USD and NZD/USD all have the U.S. Dollar as the counter currency.

Basically, the movement of a currency pair such as EUR/USD from 1.2000 to 1.2001 would represent a one pip rise in the exchange rate, so the pip size in EUR/USD is 0.0001. This one pip movement would equal a shift in value of $0.10 on a micro lot of 1,000 euros, $1 on a mini lot of 10,000 euros and $10 for a full lot of 100,000 euros. Those would be your pip values when trading in a U.S. Dollar denominated account.

Therefore, to calculate the pip value for EUR/USD when the pip size is 0.0001, the spot rate is 1.12034 and you are trading a position size of €100,000, you would plug that information into the formula shown in step 3 above as follows:

(0.0001 / 1.12034) X €100,000 = €8.925861791956013

Performing that calculation yields the pip value of €8.925861791956013. If you then want to calculate the U.S. Dollar amount of this pip value, you must take the pip value of €8.925861791956013 and convert it into U.S. Dollars by multiplying it by the EUR/USD exchange rate of 1.12034 as follows:

€8.925861791956013 X 1.12034 $/€ = $10

Therefore, the pip value for a position size of €100,000 when the EUR/USD exchange rate is trading at 1.12034 is €8.925861791956013 in a euro-denominated account or $10 in an account denominated in U.S. Dollars.

2. For pairs with the U.S. Dollar as the U.S. Dollar as the base currency

Most other currency pairs have the U.S. Dollar as the base currency, such as USD/JPY and USD/CAD, for example, and they have different pip values. To calculate the pip value where the USD is the base currency when trading in a U.S. Dollar-denominated account, you need to divide the position size by the exchange rate.

For example, if the USD/CAD exchange rate is trading at 1.3000 and you have a $100,000 position, then the pip value is one pip or 0.0001 x $100,000 equals CAD$10 since the canadian dollar is the counter currency.

If you then wanted to convert that pip value into U.S. Dollars, you would need to divide by the USD/CAD exchange rate of 1.3000 canadian dollars per U.S. Dollar, thereby yielding a USD pip value for that $100,000 position of $7.692307692307692.

3. Computing pip values for cross currency pairs

To find the pip value of a currency pair where neither currency is the account currency, for example, when you are trading the EUR/GBP cross currency pair in a U.S. Dollar-denominated account, you multiply the standard 10 pip value per full lot by the counter currency/account currency exchange rate, or GBP/USD in this example.

If the GBP/USD rate is 1.3000, that gives you a pip value of 10 x 1.3000 or $13 for a EUR/GBP full lot position of 100,000 euros.

4. Pip value calculation shortcuts

In general, if you trade in an account denominated in a particular currency and the currency the account is denominated in is the counter currency of a currency pair, then a short cut to the pip value calculation exists that is rather easy to remember.

Basically, positions in that pair will have a fixed pip value of 0.10, 1 or 10 counter currency units respectively, depending on if you are trading a mini, micro or full lot.

For example, if your trading account with an online broker is funded with U.S. Dollars, then any currency pair with the USD as the counter currency, such as EUR/USD, GBP/USD, AUD/USD or NZD/USD, will have a pip value of $0.10 for a micro lot of 1,000 base currency units, $1 for a mini lot of 10,000 base currency units or $10 for a full lot of 100,000 base currency units.

To find the pip value when the USD is listed as the base currency, as in USD/JPY or USD/CAD, for an account denominated in U.S. Dollars, divide the above-listed standard pip values per lot by the relevant exchange rate.

Thus, if you are trading a full lot of $100,000 in the USD/CAD pair, then you divide the standard 10 pip value per full lot by the USD/CAD exchange rate. If the USD/CAD pair is trading at 1.3400, you will arrive at the correct pip value of 10 / 1.3400 = $7.462686567164179 or $7.46 per full lot when trading in an account denominated in U.S. Dollars.

How is pip value used in forex trading?

Pip values give you a useful sense of the risk involved and margin required per pip when taking a position in currency pairs of similar volatility levels. Without performing a precise calculation of the pip value in a currency pair, an accurate assessment of the risk you are taking by holding a position in a given currency pair cannot be made.

In addition, since forex transactions are typically leveraged, the pip value of positions gets multiplied by the amount of leverage used. By knowing the pip value of a currency pair, you can use money management techniques to calculate the ideal position size for any trade within the limits of the size of your account and your risk tolerance. Without this knowledge, you might wind up taking either too much or too little risk on a trade.

Start building your trading plan

In order to build a comprehensive and effective trading plan, incorporate sound money-management techniques that include position sizing.

Knowing the pip value of each currency pair you trade or plan on trading expressed in your account currency gives you a much more precise assessment of how many pips of risk you are taking in any given currency pair.

Pip value also helps you assess if that position risk you have or are planning to take is affordable and aligned with your risk appetite and account size.

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