Tech

Understanding The Concept of PIPS In Forex Trading

Forex trading is a battle of risk and reward. To play it safe, you must understand the role that pip values play in the forex market. By definition, a pip value is the smallest unit of measurement for price changes in currency pairs.

In simpler words, a pip represents the smallest change in the value of the currency pair. Let’s understand the concept of pips in detail to better understand the topic.

Importance of PIPS in Forex Trading

PIP is a fundamental concept in forex trading that allows traders to measure the risk of holding a position. For instance, let’s say a pair moves by a pip in the direction you’ve opened a trade in. This means you have an unrealised profit of 1 pip.

If you close your position at this point, you will realise a profit of 1 pip, but if the pair moves in the opposite direction, you are at risk of losing 1 pip or more, depending upon when you close the trade.

To easily determine how much profit or loss you have made in a trade, you can use a profit calculator, which shows you the numbers in your own currency.

Coming back to pips, then if you don’t know the pip value, then it’ll be hard to calculate the margin requirements accurately, and as a result, managing risk would be a problem.

The importance of Pips is about more than just risk management. It also helps you make informed decisions about position sizing, especially in leveraged trades where the pip value of positions gets multiplied by the amount of leverage used, increasing the risk on a specific trade.

However, with the help of pip value calculations and using the right money management techniques, you can determine the ideal position size for any trade and make sure that it is within the limits of your account size and risk tolerance.

Without the pip value knowledge, you may take too much or too little risk on a trade. While taking too much risk can wipe out your account, taking too little risk may limit your returns.

How To Calculate Pips?

Calculating pip value is crucial, but doing it with precision and accuracy is important. Each pip must be multiplied by the specific lot or contract size to find its monetary value. For standard lots, this would be 100,000 units of the base currency, while mini lots would be 10,000 units.

As pip value calculation allows traders to determine the monetary value of their trades, they can use this information to set take-profit targets and stop-loss at appropriate levels.

Instead of merely analysing pip movements, traders can also determine how their trading account’s equity will fluctuate with respect to the movements in the market, ultimately helping them to find the profit or loss on a position.

One important thing to keep in mind while calculating a pip value is that the value of one pip varies for different currency pairs. This is because the value of one pip is always displayed in the currency of the quote or variable currency, which varies when trading different currency pairs.

For example, when trading the EUR/USD pair, the value of one pip will be expressed in USD, whereas when trading the GBP/JPY pair, the value of one pip will be in JPY.

Mostly while calculating pips, quoted prices are placed up to four decimal points. In such conventional exchanges, one pip would be equal to one unit of the quote’s fourth decimal place.

However, in real-time pip calculations, things are rarely that simple, and to ensure accuracy and save time, all traders use a standard pip calculator.

When it comes to currency pairs that include the Yen, a different convention is followed. The Yen is only quoted up to two decimal points. This also implies that the pip value will always be significantly higher or lower for every currency pair with the Yen in it, adding further complexity to the pip value calculation.

What is the Difference Between Pip, Pipette and Tick?

In the forex market, several price measurement tools are used to determine the value of different currency pairs. One such term is the pip, which, as we read above, represents the smallest unit of price movement.

It stands for ‘point in percentage’, ‘percentage in point’, or ‘price interest point’ and is represented to the right of the decimal. PIP is used to express the change in price between two currencies.

The smallest fluctuation in the value of most currency pairs that are quoted up to four decimal places can be measured with the help of the last decimal point, for example, if the trade entry price of EUR/USD is at 1.3645 and it goes up to 1.3646, the price has increased by 1 pip.

Some traders also use the term ‘pipette’, which represents the smallest unit used to measure and represent the change in value between currency pairs.

While there is no difference in definition between a pip and a pipette, the values are calculated differently. Pip values are only calculated up to the 2nd and 4th decimal places, while pipette values are calculated up to the 3rd and 5th decimal places. Pipettes are essentially the decimal odds, while the pips are decimal evens.

Now coming to ticks, it is made up of pipettes. Ticks are fractional price movements on a currency pair. It represents the difference between the current and last-quoted prices or the amount the market has moved in a given time.

However, the value of a tick is not a fixed number and fluctuates in real-time depending on market conditions.

How Many Pips Should Be Targeted Per Day?

Many forex traders enter the market with the aim of hitting a specific number of pips daily. It’s like they want to collect as many pips as a kid collecting candies on Halloween. But this approach can be dangerous and unproductive.

Firstly, no trade is guaranteed to give positive returns. So trying to achieve a daily pip goal is a recipe for disaster. The market is volatile, and setting such unrealistic expectations is setting yourself up for failure.

Moreover, this approach encourages traders to trade more when their strategy is ineffective and to trade less during periods when their strategy could be more effective. It’s like a football coach instructing the team to score three goals in every match. It’s unrealistic and counterproductive.

What if a trader hits their daily pip goal in the morning and stops trading? They may have missed out on potential trades that could have occurred during ideal market conditions.

Every strategy has its ideal market conditions, so traders must be flexible and adaptable and not limit themselves to a specific number of pips per day.

The forex market is unpredictable, and the ideal market conditions can change frequently without warning. Therefore, traders should work on building a well-defined strategy and consistently sticking to it.

It is also a good idea to practise their strategy on a demo account. They should also use all the necessary trading tools to ensure a smooth trading process. This way, they can perfect their skills, test their strategy, and learn to adapt to changing market conditions.

Conclusion

The intricacies of calculating percentage in point, or pips, in forex trading can be complex and perplexing, especially for those who are just starting out. While there are some established conventions that most standardised currencies follow, the calculation of pips can vary depending on the currency pair being traded.

Therefore, traders need to learn the basics of pip value calculation even when they are relying on a calculator. This will help them understand how things work in the forex market.

Tech

US: A Judge Mandates that Google Allow Competing App Stores to Access Android

(VOR News) – The ruling is that Google, the greatest technology firm in the world, is required to make its Android smartphone operating system available to merchants that supply applications that are in direct rivalry with Google’s. This decision was reached by a judge in the United States of America.

The Android Play store, which is owned and operated by Google, was found to be an example of an illegal monopoly arrangement by a jury in the state of California on Monday. The finding was reached by a jury. Monday is the day that this decision was come to.

An earlier federal judge ruled Google’s search engine illegal.

This finding, which came after that decision, has forced the company to suffer yet another setback. As a result of the corporation having already encountered its initial obstacle, this decision has been established. This particular decision was made by the judge during the month of August, when the month was in progress.

In light of the fact that the decision was made, what exactly does it mean that the choice was accepted?

In accordance with the verdict, Google is obligated to make it possible for users to download Android app stores that are offered by third-party competitors. For a period of three years, the corporation is prohibited from imposing restrictions on the usage of payment mechanisms that are integrated into the application.

In addition, it is important to keep in mind that Google does not possess the right to impose restrictions on the utilization of ways to make payments online.

Additionally, the verdict makes it unlawful for Google to give money to manufacturers of smartphones in order to preinstall its app store. Smartphone manufacturers are prohibited from doing so.

Furthermore, it prevents Google from the possibility of sharing the revenue that is generated by the Play store with other companies that are in the industry of delivering mobile applications.

In addition to this, the court has mandated the establishment of a technical committee that will be made up of three different people chosen at random.

The committee will be responsible for monitoring the implementation of the reforms and finding solutions to any disagreements that may occur as a consequence of the implementation of the reforms while they are being implemented. This task will fall under the committee’s purview so that it may fulfill its duties.

However, certain components were allowed to be put into action until July 1st, despite the fact that the judge’s statement suggested that the ruling would take effect on November 1st. The statement was the basis for the ruling, which ultimately became effective.

Particularly, I wanted to know what Google’s reaction would be.

There is a fact that Google does not adhere to this directive, which has been brought to their attention. This document argued that the alterations that the judge had ordered to be made would “cause a range of unintended consequences that will harm American consumers, developers, and device makers.”

The judge had ordered the modifications to be implemented. The alterations were to be carried out as indicated by the judge’s ruling. The judge made it clear that he expected these revisions to be carried out in accordance with his guidance.

The company’s regulatory affairs vice president, Lee-Anne Mulholland, provided the following statement: “We look forward to continuing to make our case on appeal, and we will continue to advocate for what is best for developers, device manufacturers, and the billions of Android users around the world.”

On average, over seventy percent of the total market for smartphones and other mobile devices is comprised of mobile devices that are powered by the Android operating system. Both smartphones and other small mobile devices are included in this category.

In the event that the Play app store continues to be shown on the home page and that other Google applications are pre-installed prior to the installation of the Android application, smartphone manufacturers are entitled to install the Android application at no cost at their discretion.

Additionally, the Android application can be installed on devices that are manufactured for smartphones.

SOURCE: DWN

Tech

WhatsApp Now Features a “Mention” Tool for Status Updates and Stories.

(VOR News) – Those who use WhatsApp now have the ability to mention other people in their stories or status updates as a consequence of a feature that was only recently enabled on the platform.

Previous to this point, this capability was not available. It wasn’t until quite recently that this capability became available to the public.

According to the information that was provided by the company, users now have the opportunity to tag close friends in their stories, and the person who is mentioned will have the option to go back and re-share an earlier version of that story. This information was provided by the company. The corporation was kind enough to reveal this information to us.

Because of a new feature that has been added to the WhatsApp app, users now have the opportunity to like individual stories and status updates.

This capability was previously unavailable to WhatsApp users.

A significant amount of progress has been made in this context. Alternative readers now have the chance to “like” a work, which is comparable to liking a post on Facebook. This feature was introduced in recent years. When compared to the past, this is a tremendous shift.

At one point in time, viewers were only permitted to observe the total number of views that a particular story had gotten. These restrictions were eliminated in later versions of the software.

Additionally, it is essential that the likes and reactions to a story be kept anonymous during the entire process. One of the factors that contributes to the general mystery that surrounds this characteristic is the fact that this is one of the elements.

The person who brought it to the attention of others is the only person who will be able to judge who enjoyed it and who did not care about it. These individuals will be able to make this determination.

A notification will be issued to the individual who was referenced earlier in the sentence and who was named in the story or status update that was discussed. A notification of this nature will be sent to the individual via WhatsApp.

This message will be sent to the user in question whenever that person makes a reference to another person while they are in the process of elaborating on a narrative or updating their status. You will receive a notification alerting you that you have been tagged in the narrative.

This notification will be delivered to the person who receives this message. In addition, students will be provided with the opportunity to re-share the tale for themselves.

It is important to note that if the names of individuals who have been referenced in a narrative or a status update are included in any of these, then the names of those individuals will not be accessible to any third party through any of these. In light of the fact that the identities of those individuals will be concealed from public disclosure, this is the condition that will be required.

While WhatsApp recently made the announcement that it will be incorporating this functionality, it is highly likely that not all users will have access to it at the same time.

This is despite the fact that WhatsApp recently made this announcement.

Despite the fact that WhatsApp has only recently made a public announcement that it will move forward with the deployment, this is the situation that has presented itself.

As soon as a short period of time has elapsed, access will be made available to each and every person on the entire world.

Additionally, WhatsApp has hinted that new functionalities might be introduced to the status and updates tab in the future months.

The purpose of these capabilities is to provide users with assistance in maintaining healthy connections with the individuals who play a vital role in their living experiences. This is done in order to give users with support in maintaining close relationships with the folks who are the subject of the inquiry.

It is with the purpose of supporting users in successfully keeping close ties with the individuals in question that this step is taken.

SOURCE: DN

Tech

Over The Planned “Link Tax” Bill, Google Threatens to Remove NZ News Links.

(VOR News) – Google has sent a strong message to the New Zealand government, threatening to stop boosting local news content should the Fair Digital News Bargaining Bill become law.

The law, put up by the Labour government and backed by the coalition in power at the moment, mandates that digital companies such as Google pay back news organizations for links to their material.

News publishers, on the other hand, charge the tech giant with “corporate bullying.”

Google says this measure may have unanticipated effects.

Google New Zealand’s country director, Caroline Rainsford, voiced her worries that the law, which is being referred to as a “link tax,” is not doing enough to support the media industry in New Zealand right now.

She underlined that Google would have to make major adjustments if the previously mentioned law were to pass, including cutting off links to news articles from its Search, News, and Discover platforms and cutting off financial ties with regional publications.

According to Rainsford, similar legislation has been proposed and approved in other nations including Australia and Canada, but it has not been proven to be effective there and breaches the principles of the open web.

She drew attention to the fact that smaller media outlets will be most negatively impacted, which will limit their capacity to reach prospective audiences.

Google says its alternative options will protect smaller, local media from negative effects.

Conversely, it conveys apprehension regarding the possible fiscal obligations and vagueness of the legislation, which it feels generates an intolerable level of ambiguity for enterprises functioning within New Zealand.

The New Zealand News Publishers Association (NPA) has reacted to Google’s warnings by alleging that the internet behemoth is using coercive tactics.

They specifically contend that the need for regulation stems from the market distortion that Google and other tech giants have created, which has fueled their expansion into some of the most significant corporations in global history.

The legislation aims to create a more equal framework that media businesses can use to negotiate commercial relationships with technological platforms that profit from their content.

New Zealand Media Editors CEO Michael Boggs stated that he was in favor of the bill, citing the fact that Google now makes a substantial profit from material created by regional publications.

He also emphasized that the use of artificial intelligence by Google—which frequently makes references to news articles without giving credit to the original sources—highlights the significance of enacting legislation.

Paul Goldsmith, the Minister of Media and Communications, has stated that the government is now evaluating various viewpoints and is still in the consultation phase.

He stated that the government and Google have been having continuous talks and will keep up these ongoing discussions.

However, not all political parties accept the validity of the Act.

The ACT Party’s leader, David Seymour, has voiced his displeasure of the proposal, saying that Google is a game the government is “playing chicken” with. He threatened the smaller media companies, saying that they would suffer from worse search engine rankings if the internet giant followed through on its promises.

Seymour contended that it is not the government’s responsibility to shield companies from shifts in the market brought about by consumer preferences.

The things that have happened in other nations are similar to what has happened in New Zealand.

Google has agreements with a number of Australian media firms that are in compliance with its News Media Bargaining Code. These agreements contain provisions that permit an annual cancellation of these agreements.

Due to the government’s decision to exempt Google from the Online News Act, the company has committed to supporting news dissemination by contributing annually to the Canadian journalistic community.

The New Zealand measure is consistent with global approaches aimed at regulating the relationships that exist between technology corporations and media organizations.

It’s hard to say what will happen with the Fair Digital News Bargaining Bill as the discussion goes on. Google and the New Zealand media landscape are preparing for what might be a protracted legal battle.

SOURCE: TET