Pip
Price Interest point (Pip) is the term used in currency market to represent
the smallest price increment in a currency. It is often referred to as ticks
or points in the market. In EUR/USD, a movement from .9018 to .9019 is one
pip. In USD/JPY, a movement from 128.50 to 128.51 is one pip.
Average trading range
Pip Values – according to your trading platform from $7.00 to $10.00 USD.
Pip Spreads – according to your trading platform from 3 to 20 pips.
Volume
The trading volume measures how much “money” is being traded. During some
types of news breaks and when the New York’s exchange is open, the volume is
obviously higher. The volume indicates us that more things can change. There
no real strong correlation for volume, good trades is being developed even
when the Forex volume is relatively low.
Buying and Selling short
Buying = term to use when buying a currency pair to open a trade.
Selling short = term to use when selling a currency pair to open a trade.
Both terms, refer to things we do to open a trade.
On the other hand, to exit a trade, you will have to use the terms “selling”
and “buying-back”. The term “selling” refers to what we do to exit a trade
that initially started by “buying”. The term “buying-back” refers to what we
do to exit a trade that initially started by “selling-short”.
Basically the term, “selling-short” can be referred to the futures and
commodities market. For instance the mentality of buying a field to plant
vegetables that will grow in the future is the same thing than buying a
currency and to predict that it will eventually go short.
