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- Because your profit and loss will be the pip movement multiplied by the size of your position.
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- Each currency in the pair is listed as a three-letter code, which tends to be formed of two letters that stand for the region, and one standing for the currency itself.
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James Chen, CMT is an expert trader, investment adviser, and global market strategist. He has authored books on technical analysis and foreign exchange trading published by John Wiley and Sons and served as a guest expert on Forex news CNBC, BloombergTV, Forbes, and Reuters among other financial media. Apart from banks, financial companies and professional traders, anybody with an interest to capitalize on daily market moves can access currency trading.