ask-mpreg-rock asked:

Thank you so very much for the follow! ^^

“You’re welcome,” BubbleMan said,“I really appreciate someone noticing me."after popping his head out of the water. "Pretty much every human says that I suck,” he added,“do you need help?” ((Thank you for noticing my BubbleMan RP blog, I have two more blogs like this one but for an OC I made and MetalMan. The OC is the Green Biker Gal, a maverick hunter based off the legendary GBD (Green Biker Dude).If you want to RP with them of on this blog I’d be happy. This is the first time someone said something to me blog wise I looove your’s and hope you get better soon (yes I saw the post about it) I can’t thank you enough.
Your fellow tumblr blogger, Pickachu22x. P.S. You can call me by my real name, Monica, too, if we’re talking OOC))

Pips and Profits

Pips and Profits

What is a Pip?

When you are into weightlifting, the common lingo of performance is pounds:
“I bench pressed 150 pounds today.”

When you are into forex, the common lingo of performance is pips:
“I made 150 pips profit on my last trade” or “My trade was stopped out today and I lost 85 pips.”

Ok, so what is a pip?

Pip is short for “percentage in point” or “price interest point," and it is the smallest incremental price move that a currency pair can make. It’s the last decimal point in exchange rates or currency pairs. Depending on context, this is normally one basis point 0.0001 in the case of EUR/USD, GBD/USD, USD/CHF and .01 in the case of USD/JPY.

It is easy to see with examples.

Here is a 4-digit broker example:

Note: With 4 digit brokers, this last decimal point is 0.0001 for most currency pairs, and 0.01 for Yen based currency pairs. The spread is 2 pips (1.3504-1.3502=2) on this Admiral Markets demo. If the EUR/USD moves from 1.3502 to 1.3503, it would have moved ONE PIP. 

Trade Sample on EUR/USD:

If you buy EUR/USD at 1.3505 and sell at 1.3525, you would have made 20 pips.

Trade sample on USD/JPY:

If you sold USD/JPY at 88.95 and exited at 89.25, you would have lost -30 pips.

Here is a 5-digit broker example:

With 5 digit brokers (also called fractional pricing brokers), the last decimal point is 0.00001, or 0.001 for Yen based currencies, and it represents a fraction of a pip. For example, the spread on the EUR/USD is 0.9 pips (1.34995-1.34986) on this Alpari UK demo. If the EUR/USD moves from 1.34986 to 1.34996, it would have moved 1 pip. 

Trade Sample on GBP/USD:

If you bought the GBP/USD at 1.55508 and sold it at 1.56791, you would have made 128.30 pips (1.56791-1.55508=128.30).

Because of the extra digit, it is harder to eyeball an exact pip spread or pip profit without the aid of a calculator. But this eyeballing problem of 5-digit brokers is outweighed by the larger advantage of typically better spreads, i.e., lower transaction costs, compared to their 4 digit broker counterparts.

The reason pips are so important is because they are the basis for calculating the dollar profit or loss in forex trading, as we shall see in the calculation of pip value (automatic and manual).

What is the difference between a pip and tick size and tick? 

In Forex, the tick size and pip are almost synonymous. As we have seen, pip is the smallest incremental price move of a currency. Tick size is the smallest possible change in price - very similar. Just like futures, the minimum possible amount that a price can move is also the market’s tick size. With 4 digit brokers, the EUR/USD has a tick size of 0.0001, which means that the smallest increment that the price can move from 1.3840 would be up to 1.3841 or down to 1.3839. The EUR futures market also has a tick size of 0.0001, but the difference is that the tick size of one contract has a fixed tick value of $12.50, meaning that for every 0.0001 that the price moves up or down, the profit or loss of the trade would increase or decrease by $12.50. In contrast, the tick size (pip or fraction of pip) of forex pairs is not fixed to a dollar value, and is instead calculated relative to the units traded (for Direct Rates), and also to the exchange rate and base currency quote (for Indirect Rates and Cross Rates). 

How to Calculate Pip Value and Profit/Loss Manually

Bear in mind that the calculation of the dollar pip value is done by the broker automatically. However, for a number of reasons, it is useful to know how to do it on your own.

The calculation of profit/loss is different depending on the currency rate types, and there are three of them: 

There is a way to calculate the pip value of each pair and multiply it with the pip movement to derive the profit and loss in dollars.

If you don’t want to do pip value calculations, you can always use a handy indicator that displays the pip value (along with bid, spread, buy/sell swap rate) of a multiplicity of pairs.

Author: Hanover. This indicator will display the following info, for all currency pairs offered by your broker:
  • Symbol (A=AUD, C=CAD, E=EUR, F=CHF, G=GBP, J=JPY, N=NZD, U=USD) 
  • Current bid price 
  • Daily range to date:ave daily range (DR as a % of ADR)
  • Spread (spread as a % of ADR) 
  • Dollars per pip (per full lot traded) 
  • Swap paid(+) or charged(-) by broker on long and short positions

A picture of both this handy indicator applied to the AUDUSD chart of FXPro looks like this: 

The dollar per pip value appears as third from last column. UJ or USDJPY has a pip value of 12.44 (one of the bigger ones), and AN or AUDNZD has a pip value of 7.65 (one of the smaller ones). Notice that the AUDNZD spread is one of the largest at 20 pips (4th from last column), which is a whopping 28.9% of average daily range: as soon you go long on this pair with a 100K lot, you would be down -$153 (20 pips X 7.65). Not good. Thankfully, most pairs have a spread less than 5 pips and a pip value close to 10. Going long EU or EURUSD would incur a spread cost of only 1.8 pips (2.8% of ADR) and at a pip value of $10, you would be only down $18 on a 100K lot. This is a sizable difference from the cost of trading AUDNZD. 

Below are ways to calculate pip values and pip movements through various calculations. 

Direct Rates

Direct rates are currency pairs where the USD is the quote currency (the second currency being quoted i.e. XXX/USD). The common base currency (first currency quoted) pairings include EUR, GBP, AUD, and NZD. 

Below is a table illustrating how to derive the Pip Value, Profit / Loss (P/L) in Pips, and the P/L in $USD

Note on Direct Rates: Direct rates provide the easiest formula for calculating the pip value (lot size * tick size). Because the pip value does not divide with the current rate, as in the two rate formulas below, it remains the same value between the direct rate pairs and each pair’s price fluctuations. You can always remember that the pip value of a micro lot (1000 units) is $0.1 (10 cents), that the pip value of a mini lot (10,000 units) is $1, and that the pip value of a standard lot (100,000 units) is $10. 

Indirect Rates

Indirect rates are those currencies traded indirectly against the U.S. Dollar (USD). For example, with USD/CAD, the USD is the "base currency,” the CAD is the “quote currency” and the rate quote is expressed as units per USD. USD/CAD trading at 0.9874 means that 1 USD = 0.9874. 

Note on Indirect Rates: The only difference in pip value calculation between indirect rates and direct rates is the division with the current rate (lot size * tick size / currency rate). This division takes away from the more fixed rate of the direct rates. It makes all the pip values between the indirect rate pairs differ, and all the pip values will dynamically change relative to the current rate that changes constantly.

Cross Rates

Cross Rates are currency pairs that do not involve the USD. Interestingly enough, though the USD is not represented in the quote, it is used in the quote calculation. An example of a cross rate is the EUR/CHF, where EUR is the base currency and CHF is the quote currency. 

Note on Cross Rates: The difference between this formula and the indirect one is that in the calculation of the pip value there is an extra multiple with the base quote, which in this example above is the current EUR/USD price. This makes the calculation a little more involved than the previous two. These extra calculations with base quote and division with current rate makes all the pip values between the cross rate pairs differ, and all the pip values will dynamically change relative to the current rate that itself changes constantly.

Here is a table breakdown of all the formulas, side by side: 

Next Article: Transaction Costs

anonymous asked:

Driad has Faust's skype, right? why can't they make Faust go on cam and then screenshot that?

Hmm we already know what he looks like. It took me two seconds to search his username and come up with a call out post that had his selfies in it. 

Thing is… now that gdb is gone, only the blue-eyed boy on the picture could prove anything by saying he held a sign to help Faust. Everything else, it’s always coming from probably-driad and/or Faust and they both are rumored to be shifty and untrustworthy. 

Hmmm… In other words, when Faust says gbd is him, it only means something if you trust what Faust says. And after doing some digging on him, I would simply not believe him about anything at all. He is the type who enjoys hurting strangers just because he can, you see? 

I would believe the blue-eyed boy coming forward and explaining why the selfies of Faust and gdb are different… that would be indestructible evidence. Hmm… I don’t think anything else would be impossible to fabricate. 




1 :名無しさん@おーぷん:2015/05/08(金)16:06:23 ID:EX4
父親 会長 朝会社きて新聞読んで帰るクソジジイ
母親 取締役 一度も出社せず皆の給料明細を手書きするだけの仕事をしている
長男 社長 やる気のない先のこと考えてない糞
次男 常務 出社せず稀に休日に来て少し経理をやる






2 :大日如来◆ED5ouVC3R8mh:2015/05/08(金)16:08:44 ID:GBd

4 :名無しさん@おーぷん:2015/05/08(金…

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