Sani Global Forex

-A Technical Analysis View- From a Forex trading perspective, Spinning tops are candlesticks that depict indecision or a pending trend-reversal in the market. Indecision in the market indicates loss of momentum from both buyers and sellers. An indication that neither buyers nor sellers are in control at that moment. A situation where a trader embraces wait and observe mode. Therefore, when a Spinning top candlestick forms following an up-trend (bullish market), it depicts – buyers losing momentum (Bullish Spinning tops). Likewise, when a Spinning top candlestick forms following a down-trend (bearish market), it depicts sellers losing momentum (Bearish Spinning tops). (Pic. Courtesy of swagforex) Two prominent features are indicative of a spinning top candlestick, namely: – Small body with (long) wicks/shadows extending from both upper and lower sides. Upper and Lower wicks often equal in length. Essentially, wicks indicate the following: – U...

-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

  Calculating PIP value -Forex Trading Perspective- Calculating value of a PIP is a necessary step in the understanding of  profit/loss, for it enables effective implementation of risk management strategies in Forex trading. PIP values are usually calculated in lot or volume sizes of; Standard lot (100,000 units or 1.0), Mini lot (10,000 units or 0.1) or Micro lot (1,000 units or 0.01). Therefore, given a quote, we calculate PIP value by multiplying the given volume by ‘0.0001’ in USD/other currency pairs, and ‘0.01’ in JPY based currency pairs. For example, a 10,000 EURUSD quote, we can get a PIP value in USD by multiplying 10,000×0.0001=1. Which means; a change (up-ward or down-ward movement) of 1 PIP in this example equals 1 USD. In other words , 1 PIP in this example would equal to a profit or loss of 1USD. And a 20,000 EURUSD quote, PIP value in USD will be (20,000×0.0001) =2USD per PIP, so on and so forth. So, given 10,000 USDJPY quote, the PIP va...

-Forex Trading - beginner's Perspective- LOT SIZES: As mentioned in Forex Trading Intro. , the change in currency value relative to another is in a pair, is measured in “ pips ”. And a PIP indicates (very small) percentage change in price for a pair. Due to this 'very small change' in price as indicated by PIPs, that trades are taken in Lot sizes (Lots). Lots come in different sizes, and are allocated as follows: - -Full (standard) Lot = 100,000 Units (1.0) -Mini Lot = 10,000 Units (0.1). -Micro Lot = 1,000 Units (0.01) For Instance: To calculate the value of a PIP given a “GBPUSD” pair, would be done as follows: - As we are aware, a price increase of 0.0001 (in a US$ based pair) is equal to 1 PIP. Say we trade a mini lot of 10,000 units and assume that the GBPUSD exchange rate is 1.2940. Here is how we can calculate value of a PIP: - Formula : (1 PIP in decimal places * trade size) / Exchange rate = Value per PIP. 0.0001*10,000=1 1/1.2940=0.772...

PIP What is a PIP? What does it represent? - A PIP is a unit of measurement in currency movement, and stands for (Point In Percentage). It is actually a small (unit) measure of movement or change in a currency pair (or quote). Mind you , In Forex trading, Currencies are quoted in pairs. For example EURUSD (EURO and US Dollar) is a currency pair. Where the first currency -in this example- EURO, is referred to as Base currency, and US Dollars a Counter (quote) currency. -In a quotation, a PIP is the last decimal place. Meaning that; a PIP indicates fractional change in price of a currency pair. For instance , In US$ quoted pairs, 1 PIP =   0.0001. In other words , 1/100 th of 1%, or one basis point. This is contrary to Japanese ‘YEN’ based pairs, where 1 PIP = 0.01.  So if the EURUSD price Quote is: 1.1741, one PIP move down-ward will lead to the price being 1.1740. NB: Unlike US$ quotes which have four decimal places, YEN based p...

Introduction to Forex Trading A New Entrant's Perspective What is FOREX? and What does Forex Trading mean? “Forex” or FX stands for; “Foreign Exchange”.  Essentially, Forex Trading is about the exchange of one currency for another. Each county has its own unique currency (money) used in that particular country. So when you intend to travel to another country, you are required to exchange your country currency for currency of the country you intend to visit. In this ‘currency exchange’ exercise, you sale your country (local) currency and buy currency of the (foreign) country you will be visiting. For instance, an American visiting South Africa will have to sell his Dollars (US$) and buy South African Rands (ZAR) so that he is able to buy stuff on the South African markets. The Foreign Exchange market (FOREX) is the largest financial market in the world. Just to give you some perspective, around US$5Trillion is traded every day on Forex market globally. OJ Mwal...