Know Forex Pips (Part II)

By Ahmad Hassam

The results must be converted to dollars using the current exchange rate between the quote currency and the US Dollar in order to obtain the dollar value of the pip if the quote currency is anything other than US Dollar. Here are a few examples:

First Example: USD is the base currency and JPY is the quote currency here in the currency pair USD/JPY. Using our standard formula: Pip value for 1 standard lot of USD/JPY= 100,000 (Lot Size)*1(No of Lots)*0.01(Pip Size) = 1000.

If your account is in US Dollar, you need to convert this pip value into US Dollar. The quote currency is in Yen, so the value of 1 pip on a standard lot is also in Yen. The broker will calculate the pip value in US Dollar for you automatically if you instruct the broker to do so.

Your profit and loss will stay in that currency you made a profit or loss in until you instruct the broker to exchange those currencies into your own base currency. However, lets do it ourselves as well.

Suppose the USD/JPY rate is 101.02. The Dollar pip value will be 1000/101.02= $ 9.89. Therefore, 1 pip is equal to $ 9.89 in the case of USD/JPY for a standard lot at the exchange rate of 101.02.

Example No 2: Now lets take the currency pair EUR/GBP. The base currency in this case is Euro and the quote currency is British Pound.

The value of pip will be in Pounds as the quote currency is in British Pounds. Pip value for a standard lot of EUR/GBP= 100,000 (Lot Size)*1 (Number of Lots)*0.0001(Pip Size) = 10.

You need the GBP/USD exchange rate in order to convert into USD. Suppose the GBP/USD exchange rate is 1.8465. Dollar pip value will be 10*1.8465=$18.46. This means that the pip value will keep on changing depending on the currency pair exchange rate.

Example#3: Consider the currency pair EUR/USD. The base currency is Euro. Here the quote currency is in USD so you wont have to make any conversions. Pip value on a standard lot=100,000(Lot Size)*1(Number of Lots)*0.0001(Pip Size) = $10 per pip.

Leverage does not affect the pip value. It should be kept in mind that while the lot size, amount of lots traded and the specific currency pair traded will certainly affect the pip value, the leverage chosen by the trader whether it is 50:1, 400:1 or somewhere in between, has absolutely no bearing whatsoever on the pip value.

There is something more that you need to know. You must have seen many times the exchange rates expressed like 0.5678/0.5683. For example the EUR/USD exchange rate might be 0.9955/0.9959 at a particular moment in time. Always remember that exchange rates keep on changing almost from moment to moment due to the inherent volatility in the forex markets. This volatility in the currency market is what makes forex trading so exciting. The exchange rate for any currency pair is expressed in the form of bid/ask. The first number is the bid price that you will get from your forex broker if you sell Euros against US Dollar. The second number is the ask price also known as the offer price, the price at which the broker will sell you Euros against US Dollar.

Spread is also an important concept that you need to know. The difference between the bid and ask price is known as the spread. Spread is the brokers profit. Sometimes there can be slippage also. New traders often think that the difference between the price they see on their charts and the price the broker quotes them is slippage. This is wrong. Your charting software and broker prices are two different things. - 23222

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try These 1500 Pips A Day Forex Signals From Heaven. Know Forex Rebellion!

Reduce Foreclosure Risk ? Hire a Structural Engineer

By Mary Smith

Structural engineers can be an invaluable asset to buyers wishing to purchase foreclosed property. Years of neglect may have allowed small maintenance and repair problems to escalate. In some cases these problems may even threaten the entire structure. Buyers need to be fully aware of all the problems a foreclosed property may contain.

Florida sellers are required by law to disclose problems that are not obvious if they might affect the property value. Property in foreclosure however, is typically owned by a bank. They don?t live on the property and in fact, may never even visit the property. They cannot disclose information they?re not aware of. The result is that they sell these properties ?as is.? In these cases home inspectors and structural engineers can help.

Structural engineers are experts in understanding the structure of buildings. They understand how the foundation, walls, beams and other structural members work together to form a strong structure. During a structural inspection they will examine each of these members to look for deterioration, or deformation or structural weakness that could affect the building.

What?s the difference between a structural engineer and a professional home inspector? A home inspector is qualified to carefully examine a home and the systems it contains, such as electrical, plumbing, etc. Their job is to describe what is visible. Only a structural engineer is qualified to diagnose a structural problem, and recommend solutions.

Most smart home buyers will hire a home inspector before they purchase any home. Foreclosed homes that have been vacant for several years are even more of a risk. They can uncover potential problems that might cost considerable time and money in the future. Knowing about these issues ahead of the purchase allows the necessary price negotiation to cover repairs or replacement.

Always inspect any potential purchase carefully. Inspect both the property and structure. Look for defects such as walls that lean, floors that slope, doors and windows that bind, cracks in the foundation or walls or a porch that slopes toward the house. These may be symptoms of deeper problems. You will need the opinion of a structural engineer to understand the scope and severity involved.

Some may consider the purchase of a foreclosed home a risky affair. The risks can be minimized however, through the use of a home inspector and a structural engineer. These professionals can mitigate the risks and help both investors and home buyers achieve peace of mind and make a safe investment. - 23222

About the Author:

High construction costs and tight deadlines are common on commercial building projects. Florida Engineering Solutions delivers structural engineering design, quality service, quick turnaround and innovative thinking. Contact the professional structural engineers at FES for your next commercial project. Mary Smith is a freelance writer.

What You Need To Know About Foreclosure Scams

By Doc Schmyz

Home foreclosure is becoming a far more common problem. Often it originates from one missed payment which soon spirals out of control. Before you know it you have missed three or four payments and the mortgage lender or bank wants you to pay everything you owe all at once, right then and there. This sounds like a very difficult feat and many are lead to believe that they have no other choice. When the homeowners realize that they have made a grave mistake they resort to anything they can to get out of a tight situation.

Foreclosure scams are very common as much as the problem itself. Since homeowners believe that they have no choice they fall for these traps, which of course make their situation much worse than it was.

The people who work these scams advertise online, publish advertisements in the local newspaper, distribute flyers, and call houses which are included on the foreclosure list. They call themselves "mortgage consultants/real estate investment planners" who offer foreclosure services or advertise with "We buy houses" signs.

Most common scams:

Bankruptcy Foreclosure Scam

The promise here is that the house will be saved. In return they will either ask for the homeowner to pay their mortgage directly to them, hand over their deed and pay rent, or obtain refinancing. of course they don't do ANYTHING to fulfill the other end of the bargain, they don't contact your lender or obtain refinancing for you. They keep all the money and file bankruptcy without your knowledge.

Since the homeowner is not aware that bankruptcy has been filed, they fail to participate in the case. The case is dismissed and the house continues onto foreclosure. Apart from loosing money and your home, you will also have a bankruptcy on your record.

"Skimming" or also called Equity skimming

The scam operator poses as a buyer. They then promise the homeowner to pay the mortgage or given them a sum of money once the property has been sold. The operator then convinces the homeowner to sign over the deed and move out. The homeowner can stay but they have to pay rent. If they opt to move out the operator lets a third party rent the property. The scam operator of course does not pay the mortgage and lets the mortgage lender foreclose.

In the event the house has equity, the scam operator sells the property and pays off the debt. (And keeps the equity that the homeowner could have had if they sold it.)

Should you find yourself facing ANY of the above mentioned situations....contact a local mortgage office and ask them if they have ever heard of a "program" like the one you would be offered...if they say no....call the local police and ask for the consumer fraud division. - 23222

About the Author:

Doc Schmyz has done real estate deals all over the US and Mexico. His free website shares Real estate investing information for all over the US. Find real estate information by state

Six Factors To Consider When Searching For A Currency Exchange Dealer

By Richard Henry

Choosing the best people to support you could be your ticket to success in Currency exchange Trading. As such, you should make sure you appoint an adviser that is worth every penny you compensate him, and more. You see, a Forex agent is the individual who will trade in your place, and whether you turn a profit or not, you will have to give him payment, in the form of a charge. So, if you do not want to throw away money, it is necessary for you to locate the absolute best broker.

Here are six factors to look into:

1. Check their record. You will know if a broker is capable or not by looking at his numbers. If he is making a lot of money, it means that he is an experienced broker.

2. Scrutinize. A little experience check would not hurt. This could save you a lot of cash because it keeps you away from fraudulent brokers. You can inquire from the Commodity Futures Trading Commission or CFTC, or the Futures Commission Merchant or FCM. You should also make sure he is a member of the NFA, or the National Futures Association. If you find his records questionable, then look somewhere else.

3. Consider his deposit requirements. Though there is in fact no need for a deposit to start trading, numerous Forex brokers call for it as a means of safety for themselves in case they will not be paid by the investor. Nevertheless, the deposit should not be too costly; the usual asking price is $200-$500.

4. Obtain trustworthy and successful software. Your agent ought to be able to tell you about the function of software as a tool in trading. You can employ a demo account, which allows you to try out the software prior to buying it.

5. Think about the use of currency pairs. This is something a first-rate broker should do, employ an ample array of currency pairs. Short list a broker that uses the currency pairs you favor, as every one has a distinctive pattern.

6. They should have customer support. Trading is very energetic, and at any given time, you will need the assistance of your broker. You do not want to awaken him in the middle of the night solely to trade. It would be very convenient for the both of you if your broker has a helpdesk you can reach, 24/7. Of course, having excellent customer service is just as important.

Before you enter the world of Forex Trading, you need to go over these factors and see to it that you will be able to tackle these in your quest for a good broker. Foreign Exchange (Forex) Markets is purely a place where traders can trade a currency for another currency. It is a place where currencies can be bought and sold promptly and in real-time.

Well-known banks, huge multi-national companies, local governments and other financial institutions utilize the Forex Market as a vehicle for exchange.

What makes the Forex Market so admirable?

Seeing as currency trading, involves sizeable amounts of funds, many are attracted to the Forex Market owing to the return they could make in one solo winning trade. Lots of traders or companies earned millions in just one trade, that is why its impossible not to draw in new prospective traders who are disposed to imperil their money in exchange for possible proceeds.

Uniqueness of Forex Markets

Forex Markets differ due to the following reasons:

a. Forex Market attracts traders from universal markets, thus the number of trades are Gigantic

b. Currencies are able to be bought and sold promptly, without moving from the company itself, thus saving important loss in time and money.

c. Obtainable in every hour throughout the day (except on Saturdays and Sundays).

d. With the Forex Market, it matters not where you are on the earth. There are no geographical limits.

Forex Jargon

Here are some of the terminology usually used in the forex markets:

1. RATE - selling price of a currency.

2. BID OR SELL PRICE - the amount which traders can vend currencies.

3. ASK, BUY OR OFFER PRICE - the amount which traders can buy currencies.

4. SPREAD - the bid price minus the ask price.

5. TRANSACTION COST - the amount charge to you when you make transactions in the Forex Market. It is normally the ask price minus the bid price.

The difference between the Forex Market and the Stock Exchange Market? The Stock Market trades in stocks, the Forex Market trades in currencies. Both markets involves buying and selling, the only difference is that with the Stock Market, rules are precisely followed. This is to prevent companies from monopolizing stocks. That is why the Stock Market is highly controlled and has a strict environment compared to the Forex Market where there are no such rules and regulations.

How to initiate trading in the Forex Market?

The best thing to do to commence trading in the Forex Market is to do research and to talk to an investment company or stock broker that specializes in this market. It is vital for you to know what kind of Forex Trading they do before you invest your money. Go to the one that has a respectable background and to whom you could trust your money.

The income can be really extreme but continually remember that Forex Markets change continually and it is really very risky to invest There. You could net a lot today and lose everything tomorrow. So know when is a great time to buy and sell your currencies.

The best recommendation is that you must play your money smart, think really hard before making very important decisions and be very well informed, that is the key to success in almost any trade or profession. - 23222

About the Author:

Submitted by Richard Henry creator of this article. To learn more of topics as Forex an Currency Trading visit the web site at 6 Factors when Seeking A Forex Broker or 6 Factors when looking for A Forex Broker NOTE article seen above can be circulated freely on web sites, as long as ALL article content and creator information remain UNCHANGED.

Online Forex: The Keys To Becoming A Success At It

By Mclean Fernandez

The Foreign Exchange Market can be very profitable given the right tools and grasping some of the basic concepts in what knowledge is required to make sound decisions. Before you know it, you will be ready to leap right in and start participating and evaluating the market trends. The more you study these trends the more profitable you will become with your ventures.

Always remember nothing is a 100% sure thing. We lessen our risks by gaining as much knowledge as possible. The more we know and understand the varied markets, the more likely we will make good business decisions.

Once you gain access to market statistics and factual data, you will be able to move forward. The lesser our risks based on the data we compile and analyze the greater this will build our confidence. Remember, one of our main goals is to ?estimate? not ?guesstimate? our decisions when selecting which markets to go forward with.

We could compare Forex trading with gambling as much as we could compare it to real estate. When you purchase a piece of real estate, you think you are making a sound decision based on location and the appreciation over a given time period. As sound as we think our decision might have been, there is no guarantee that the market might take a turn for the worse as it has in the past.

Markets are always moving up or down. The more data we have to analyze the better our chances in determining what the markets are going to do next. A particular stock?s data that only showed weekly trends would be a higher risk than a stock whose data showed yearly trends.

So, how does one go about getting the appropriate data? Feel relieved you won?t have to watch the numbers and plot these on a chart or map yourself. There are companies that monitor this data hourly, weekly, monthly, yearly, etc. Is the data accurate? Of course! The more accurate these statistics are the more money the companies make that provides the data. The accuracy of this data is just as important to the provider as it is to the provider.

In order to decide on which markets to invest in, we have to have factual data. This data is provided by companies who have gained their success by gathering this data. These companies capture this data on hourly, weekly, monthly and even on an annual basis. The company?s profits come from the accuracy of these statistics.

The personal that provide these statistics on the markets are called ?chartists?. Whether you?re a new client or a VIP client you are given the same information. These people are called chartists because they provide charts, usually consisting of line and bar graphs. Viewing these graphs gives us a quicker perception of the ups and downs of a market and allows us to make quicker decisions based on the trends of the markets. These graphs are also referred to as ?candlestick? charts and give us data on stocks, bonds, indexes, etc.

These ?candlestick? graphs and charts are available through your broker or financial consultant. If not, there is software available that will create these graphs for you just by inserting some numbers that your broker will provide you with. These numbers are also available from each company that participates in the Foreign Exchange Market. - 23222

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