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Crypto Trading Course [Pips and Points Free Lecture] - YouTube
Channel: Petko Aleksandrov
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Hello dear traders, my name is Petko
Aleksandrov from EA Forex Academy and in
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this lecture I will make it clear about
the pips
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and the points. I had many people asking
me is this in pips, is this in points, how
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many points is the spread, the swap and
basically I want to make it clear for
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everybody. And as well probably I will
update some of the courses that I have
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ready but difficult to hear comes with
the cryptocurrencies mostly because
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these are the ones with huge spread and
some brokers are having after the second
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or the third digit. And also for the
currencies most of the brokers have with
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5 digits, some with 4 still but
anyway I want to make it clear for
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everybody. All right? So, the first point
is what is digit? If you have a price of
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12345 this means you
have 0 digits. So, let's say this is a
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stock. OK? And the price is 12345 and
there is nothing after that, there is no
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.05 or 0.5 nothing. OK? So,
it's a whole number meaning digits are 0,
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pip is 1, point is 1 as well. OK? So, when
there is nothing after a point, so if
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there is no point at all, there is no
digits. Simply said what it's after the
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point, after the comma or whatever you
call it is called digit and in this case
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the pip equals to the point. All right?
The next example is when you have
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.3 for example, point any number. You have
already 1 digit, so basically this is
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your digit. And in this case you have
pip 0.1 and you have point
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0.1. So, basically when you
have only 1 digit after the point this
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means that the pip and the point are
equal. All right?
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The next case is when you have 2
digits after the point, so 120.12,
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meaning as well that the pip equals to the
point. And the next case is when you have
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3 digits after the point. This
normally comes for the USDJPY at the
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moment or any of the JPY pairs. So, we
have 3 digits and here comes the
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difference with the pip and the point. So,
12 pips and 3 points-this is how we
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say, we pronounce the price as 120.12, normally we don't say the point but this
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is the smallest change you can see on
the price. OK? So, here already we have
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3 digits we have pip of 0.1 so 12
pips and the point is simply the last
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one. OK? So, here already the pip is 10
times bigger than the point. The next
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case what I will show you is when we
have 4 digits, let's say this is the
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price of EURUSD, doesn't matter what
example I would take but it's a
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currency. So, basically you will see 4
digits after the point and here
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basically you don't have point because
the point is equal to the pip. So, here at
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1.2345 you have your pip as 45 and
point is as well 45. So, the
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point is here but it doesn't make any
difference from the pip. OK? And the
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next case is now what you see with most
of the brokers where we have pips and
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the last one is the point. Into all days,
guys, all the brokers were till the
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fourth one, till the fourth digit and the
pip was equal to the point. And now
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because there are so many brokers on the
market and because of the huge
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competition over there
most of
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them started providing spread lower than one pip. And because there was nothing
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before lower than one pip they created
the point.
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So, now often you will see brokers
providing you spread 12345
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points. OK?
Which of course is good for everybody
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that is on trading side, because you're
paying less spread. OK? So, right here
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when you have 5 digits the price is
1.2345 pips and 4 points but normally
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we don't say the 4 points when you
pronounce the price. But the points are
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there and simply again said pips are
ten times bigger than the points. So, an
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easy way to remember it is when you have 3 digits and 5 digits is where
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you have the pip ten times bigger
than the point and when you have 2
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and you have 4, you are having pip
same as point. So, basically you can say
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there is no points or you can say that
the pip is the same as the point. I hope
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it's clear. I don't think you will find
broker nowadays that will show you 1
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digit price or without digit price but I
just made it this way, so it will be
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easier for you to understand me. And the
next question is about the spread, the swap,
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the Stop Loss and the Take Profit. If you have spread and swap normally the spread and
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the swap are in points or in USD, or
any other currency. For example, you can
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see some of the brokers for the crypto
they provide swap negative of $25 and
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there are no points to calculate there
or you can see it as well in points, but
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the spread nowadays is mostly in points. Of course there are brokers with huge
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spread, simply you can stay away from
these brokers. And the Stop Loss and the Take
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Profit it's normally in pips, could be in
points as well but especially the
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softwares
that we are using, for example EA Studio
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works with pips and FSB Pro works with
points. So, this is how you should work
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with these softwares if you are and
basically this is how the prices of the
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stocks, of the cryptocurrencies, of the
normal currencies are basically
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structured. OK? Hope all is clear here,
guys, thank you for watching and I wish
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you have a great day. Cheers, bye!
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