Points Vs Ticks Vs Pips

We all come across these three terms daily when trading. Many newbies tend to interchange these for each other. I have tried to explain in the simplest way possible.

Thanks. I understand concept easily.

These are the basic things you should learn first when trading forex. I understand things very well.

LyudmilLukanov posted:
Thanks. I understand concept easily.

You are most welcome! :)

Nice explanation. I find it helpful

Thanks for the explanation. When I was a beginner, I used to face issues with understanding points, ticks, and pips. I am sure newbies will love the information.

Thanks for the explanation. When I was a beginner, I used to face issues with understanding points, ticks, and pips. I am sure newbies will love the information.

1 pip = 10 Points.
in picture, you con see ex : USDCHF the big digit 0.9298 is in the form of Pip, and the small one after, above, is points. from 0.9298 to 0.9299 is 1 pip. and to increase 1 pip the number of points would have to be from 1 to 10.

groundhogday posted:
Nice explanation. I find it helpful

Thank you. II am glad that it helped

tracicobb posted:
Thanks for the explanation. When I was a beginner, I used to face issues with understanding points, ticks, and pips. I am sure newbies will love the information.

Its a fact, in the beginning we all have confused ourselves with these terms.. To me it all sounded synonyms of each other. But with time I understood the exact meaning and reference of each term.

when use account zero spread, bid and as is same.

langtufx posted:
when use account zero spread, bid and as is same.

It is hard to find a zero spreads broker. If you find one, it will charge a commission. So, in the end, it's all same.

ele020 posted:
We all come across these three terms daily when trading. Many newbies tend to interchange these for each other. I have tried to explain in the simplest way possible.

Hey guyssssss,,, I just noticed a mistake in my image... 😝 here is the corrected one.. I apologise for this typing error.

patriciablack posted:
This is actually very well explained and thank you for sharing it again..

Thank you @patriciablack I am glad it helped.. I am always ready to share my knowledge

It is important for newbies to understand the market first and then jump into investing and trading.

flossiewyman posted:
It is important for newbies to understand the market first and then jump into investing and trading.

Basic learning comes first no matter what your arena is.. and when you are investing your hard earned money,, its even more crucial... I have always advised my fellow traders to first work on your roots and then think of getting a fruit in future...

RobSchiz posted:

flossiewyman posted:
It is important for newbies to understand the market first and then jump into investing and trading.

Yes. Every new trader should practice on a demo account first.

100% correct...