Pipettes in Forex Trading


-A Forex Trading Perspective-
Having taken a closer look at PIPs and how to calculate them (Calculating PIP value in Forex Trading), it is necessary that we take a glimpse at Pipettes.

While a PIP is commonly regarded as smallest fraction currency pairs can move, some brokers saw the need to provide an even smaller “more accurate” fraction in the name of Pipette.

A Pipette is a fractional Pip.

So given the increasing popularity of Pipettes, some Brokers have started to provide pairs with 5 decimals (for normal/USD based pairs) and 3 decimals (for JPY based pairs).

A Pipette is one tenth (1/10) of a PIP, which represents a fraction of one in a hundred thousand (1/100,000).
 Simply put, 10 Pipettes = 1PIP.
I
n all, very few Forex traders currently use Pippets in their trades, so we will not dwell much on it.

OJ Mwale – Sani Global
Further knowledge/Resources:
https://tinyurl.com/yaejznhe
https://tinyurl.com/ycorvq5m
https://amzn.to/2L9owyi

Comments

Post a Comment

Popular posts from this blog

Harmonic Patterns

Image
Harmonic Patterns – A Forex Market Trader’s Perspective – Harmonic patterns are formations on forex charts, created by price movements in the market. These patterns assist the trader to: – Analyze the forex market and forecast its price movement with precision therefore Determine potential trend-retracement areas (entry and exist points) with the highest possible accuracy. In other words ; Harmonic patterns use Fibonacci retracement levels to geometrically draw patterns that depict potential trend-reversal zones, thereby assisting the trader to precisely highlight the best trade entry/exit points. Due to their proven accuracy in pin-pointing potential trend-reversal zones in forex market, Harmonic Patterns are key (advanced) tools in the trader’s box. Harmonic Patterns are usually characterized by “M” (Uptrend) and W” (downtrend) shapes and can be categorized into Seven basic patterns: Gartley , Butterfly , Crab , Bat , Shark , Cypher and Deep Crab
Read more

The Butterfly-Harmonic Pattern

Image
The Butterfly-Harmonic Pattern - Forex Trader’s Perspective - As explained in our introduction , Harmonic Patterns use Fibonacci retracement tool, to enable the trader determine turning points (trend reversal zones) with nearest accuracy. All Harmonic Patterns are shaped in a zigzag formation, “M” shape depicting an uptrend and a “W” depicting a downtrend. The Butterfly like all Harmonic patterns, has five points - namely, “XABCD”. As always, the market will provide the “XA” leg – being the impulse leg or move. The trader therefore is expected to identify the remaining “BCD” points. Therefore, using the Fibonacci retracement tool, you can measure and identify “BCD” points based on the following measurement guidelines or Criteria : - Plot the Fibonacci from peak of to the lowest point on the chart, then identify: - 1) Point B: Which should be at around level 78.6, retracement of leg “XA”. 2) Point C: Which should be between 38.2 and 88.6, retr
Read more

The Gartley - Harmonic Pattern

Image
Harmonic Pattern – The Gartley Harmonic Patterns enable traders to determine turning points with precision and high accuracy. In our introduction to Harmonic Patterns, we indicated that; all Harmonic patterns have five points – namely, “XABCD”. Of the five points, the market always provides “XA” which is the impulse leg/move. Therefore the trader is required to identify the remaining points - “BCD”. The Gartley pattern is the most commonly used harmonic pattern, and it was founded by an American ‘Harold McKinley Hartley’ (H.M. Hartley) in 1932.  Like all Harmonic patterns, The Gartley is based on the Fibonacci retracement numbers, and it is used to help traders forecast/identify turning points on the market-trend chart. It is therefore a good indicator on when to enter or exit trades. Using the Fibonacci tool, the Gartley pattern identifies BCD points by using the following measurement Criteria : - >Point ‘B’ is 61.8 retracement of leg “XA”. >Point
Read more