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Questions between FX/Futures.

  #8 (permalink)

Leeds UK
Trading Experience: Intermediate
Platform: FXTrade
Broker/Data: Interactive Brokers, CapitalSpreads, Oanda
Favorite Futures: GBP/USD
Tymbeline's Avatar
Posts: 429 since Apr 2015
Thanks: 1,044 given, 552 received

Abrockman View Post
I can't really find an accurate amount of what 1 pip EUR/USD actually is, it depends on lot sizes somehow but that's about all I know.

It's $10 per pip, on 1 lot: if you trade a standard 100,000 lot of EUR/USD, then each single-pip price-change wins/loses you $10.

On a mini-lot of 10,000, that would be $1 per pip, and on a micro-lot of 1,000 it would be $0.10 per pip.

Spot forex is normally traded on leverage. For example, if you use leverage of 50:1, then you'd need $2,000 to trade a lot, $200 to trade a mini-lot or $20 to trade a micro-lot.

If you trade through a retail broker such as Oanda, you can vary the size of your trade in units as small as single dollar, if you want to, rather than sticking to whole numbers of lots/mini-lots/micro-lots, and for some people the flexible position-sizing available is an advantage of spot forex over forex futures.

Oanda's spread on the EUR/USD will often be in the region of 1.2-1.3 pips, during most normal trading hours, and they offer time-unlimited demo accounts for practice. Read plenty of reviews and make up your own mind, but there are certainly worse and less well regulated retail brokers than them.

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