Unlock the secrets of successful trading with our comprehensive FREE Trading Course designed for traders of all levels. Learn proven strategies, risk management techniques, and market analysis tools to elevate your trading game. Start today and gain the skills to trade confidently in any market!
The market can make three movements:
It is essential to understand what the PIPS are and, consequently, the Take-Profit and Stop-Loss values; remember always to use the stop-loss.
Take Profit and Stop Loss are beneficial to avoid being in front of the computer all day.
PIP: PIP is the abbreviation for “Percentage in Point” or “Price Interest Point”, which is an asset’s smallest numerical price movement. A good trade for a Scalper ranges from 5 to 30 PIPS in profit; of course, nobody forbids reaching 100 or more PIPS with a single trade, even for a scalper! Generally, with a minimum bet of 0.01, 12 PIPS are equivalent to € 1, and a “bet” of 0.10 is equal to € 10, up to 100.00, equal to € 10,000 for every 12 PIPS of movement.
In this case, the Swing Trader does not opt for many small entries of 12- 20 PIPS but prefers to open only one smaller position to seek a profit of 100 PIPS and up. Now, we need to figure out how to calculate our PIPS.
Let’s take the GBP/AUD trade and assume it is now worth 1.82367; after 15 minutes, its value has moved to 1.82767; how many PIPS has it moved? The answer is 40 PIPS. The calculation is very simple; the last number must be ignored, and then the calculation will be 8276-8236 = 40 PIPS of difference. A trick? Just do 276-236 = 40 PIPS as well. Since the movement is below 100 PIPS, we can even do 76-36, and here we find our 40 PIPS. Very simple! Ignore the last number and make the difference between the two values easy! I am attaching a graph that may be helpful to you.
“The secret to being successful from a trading perspective is to have an indefinite and tireless thirst for information and knowledge.”
Paul Tudor Jones
Share it:
Join the thousands of traders who have changed their lives Thanks to our instantly funded accounts
Don’t wait any longer, the perfect moment is NOW.
OFP FUNDING Is A Trademark Brand Name Owned By FINTEKNOLOGY LTD. UK
(Company Number: 15131112)
12 Elder Place, Brighton BN14GF UK
FINTEKNOLOGY LTD London, The UK – Copyright © 2025
All content published and distributed by FINTEKNOLOGY LTD. UK (Company Number: 15131112) t/a OFP Funding (“OFP Funding”) and its affiliates (collectively the “Company”) is to be treated as general and for information purposes only. Information provided by the Company or contained herein throughout the www.ofpfunding.com website is not intended as (a) investment advice; (b) as an offer or solicitation of an offer to buy or sell; and (c) as a recommendation, endorsement or sponsorship of any security company or investment fund. Testimonials appearing may not be representative of other traders and is not a guarantee of future trading performance or success. Company is not a financial broker, financial advisor, or financial representative, and does not accept client deposits. The Company does not carry out any regulated activities; the Company’s exclusive activity is simulated trading as defined in the Terms of Use. The foreign exchange market and currency trading are highly speculative in nature and as such, currency prices may become extremely volatile. You may sustain a total loss of your funds. Foreign exchange trading carries a high level of risk and may not be suitable for all traders. The highly leveraged nature of trading means that even small price movements may have a great impact on a trading account, potentially resulting in substantial losses or gains. Always consult a financial professional before making any decisions associated with the Company. It is possible you will sustain a loss of some or all of your initial capital. No representation is being made that any account will or is likely to achieve profits or losses. OFP Funding does not offer or provide trading recommendations, and any trading decisions you make are entirely your responsibility and at your own risk. Past performance is not indicative of future results. Individual results vary and no representation is made that you will or are likely to achieve profits or incur losses comparable to those that may be shown. You acknowledge and agree that no promise or guarantee of success or profitability has been made between you, and OFP Funding For further information, please review our Terms of Use, Privacy Policy, and Risk Disclosures.
OFP Funding Ltd, a Saint Lucia Corporation, located at Ground Floor, The Sotheby Building, Rodney Village, Rodney Bay, Gros-Islet, St. Lucia, with company number 2024-00577, provides the simulated trading services advertised on www.ofpfunding.com. For more information on simulated trading services provided by OFP Funding please contact [email protected].
CFTC RULE 4.41-Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, including but not limited to, lack of liquidity. Simulated trading programs in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those depicted on the www.ofpfunding.com website.
Finteknology and OFP Funding are not brokers and do not accept deposits.
Paynetics provides payment processing services to prop trading Finteknology solely for facilitating transactions during their evaluation period. This service is provided on a limited basis and does not constitute an ongoing commitment by Paynetics to process payments for any further stages.
