How to Value Currency Pairs

The currency on the left is called the base currency, and the one on the right is the cross currency. The value of a currency pair is determined by the strength or weakness of the base currency in relation to the cross currency. In the standard account a pip is worth approximately $10 dollars, and in the mini account it is worth approximately $1 dollar.

Some pip values are fixed and others fluctuate slightly as one currency rises or falls in value relative to the other currency in the pair. Both standard and mini accounts typically have a 1% margin which allows the FOREX trader 100 to 1 leverage on their investment dollars. Read More Here

Technorati Tags: currency pairs, pips, forex,

Share This