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Depending on the size of your account, I thought that 1 PIP is just
that, one PIP. On FXCM, a $300 account gives you a PIP value of $1.00. If
the account size is $2000, then each PIP is worth $10. On up to a $10,000 to
$20,000 account (I am not quite certain of the actual minimum amount in this
category) and your PIPs are worth $100 each.
I also understood that the PIP spread is only on the purchase side; if
you buy at, say 1.1780, you would pay 1.1782 (not 1.17802 and that is only
on the purchase. When you sell, you get the actual quoted price with no PIP
spread.
Regardless, if what I am seeing is away from the market, how does that
transform into what I get? If I purchase at 1.1780 and pay 1.1782 (or
1.17802) and sell at 1.1790 but the real market it quoting different prices,
say 1.1799, how do they structure this? How can I buy at 1.1782 plus PIP
spread? If the real market has moved away from this price, how can I get
it? Please explain to me.
Many thanks,
JohnO
----- Original Message -----
From: "Henri Amand" <h.amand@xxxxxxxxx>
To: "omega-list" <omega-list@xxxxxxxxxx>
Sent: Friday, January 06, 2006 4:27 PM
Subject: Re: Any good recommendations for a Forex Broker????
VK wrote:
0.2 PIP on each side sounds like a lot to me? Does that mean if I can
buy the Euro at 1.1780 I would pay 1.1782? The same on the way back
and that on top of the normal spread? Too much...
No, it means you pay 1.17802
.2 pips is added. Not 2 pips.
greetings
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