How to Calculate Pips on FOREX Commissions – Forex Currency Trading
1. How to Calculate Pips on FOREX Commissions – Forex
Currency Trading
Candlestick Chart Profits Training Series
tinyurl.com How to Calculate Pips on FOREX Commissions – Forex Currency Trading How to
Calculate Pips on FOREX Commissions The forex industry likes to point out that most forex
brokers don’t charge commissions. It’s true you won’t see a commission charge added on
when you buy or sell currency. Although there are some exceptions, the fees (or commissions, if
you prefer) are built into the pricing system used in forex trading and are based on the
difference between bid and ask prices (called the spread). Prices are stated in terms of the
“pip,” which is the smallest amount a currency exchange rate can change by. 1 Learn how
forex prices work. Currencies trade in pairs. The exchange rate tells you how much of one
currency is required to buy one unit of the other. For example, if the euro and US dollar are
quoted at EUR/USD = 1.2500, you need .2500 to buy one euro. The quote is to four decimal
places because the pip for the US dollar is .0001 (1/100 cent). Forex brokers set their fees in
terms of pips. 2 Look at the exchange rate quoted for a currency pair. You will see two prices
listed. The bid is the price the broker will pay you for a currency and the ask is the price at which
the broker will sell you the currency. Note that the ask is always a few pips higher than the bid. 3
Subtract the bid price from the ask price to find the spread. The forex broker keeps the spread
as his fee/commission. For example, suppose you place an order using US dollars to buy euros.
If …
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Tags: Calculate, Charting Strategies, Commissions, currency, Forex, Pips, Trading
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