Forex How to Calculate Gold pips?

[Kingstone]

One of the most volatile pairs in forex trading is the XAUUSD (GOLD/US DOLLAR). It is the fastest way to make money and it is also the fastest way for the reverse; losses. That is why it is important to know how to calculate the number of pips. Knowing how to calculate the number of pips will help a trader to know how to set a stop loss and profit target.

The current value of gold against the dollar is around $1,808 (price varies). There are usually two numbers after the decimal point that determines how to get the actual pips. For example, you enter a trade at 1,808.35 and you want to target 10 pips downward. This means you place a sell trade that the value of gold will fall and you will like to set your take profit (TP). You just have to ignore the last digit (5) and remove 1 from your entry point (1808.35). This means that the value you need for gold to drop to get your 10 pips is just 1807.3.

To target 20 pips above your entry point, you need to add 20 (neglecting the last digit). Let's say your entry is 1811.65 and you want to set your profit target 20/ pips higher. Add 2 to 1811.6 and you will get 1813.6

It is like you are multiplying by 10 to get the pips. 10 pips with 0.01 will give you one dollar and 10 pips with 0.1 will give you $10.

This was confusing to me at times but I am glad I understand it now. You can use it to set your stop loss also.

 

[Victorial]

I am very grateful to you for showing us how to calculate gold pips. Although I do not trade gold, it could be very useful for someone who trades gold or better yet uses the knowledge to calculate the currency pairs. I am always finding it difficult to calculate these numbers. You will see a pair with 5 numbers after the decimal point, some you will see three, four. Like gold, it is just two. I guess if you use the neglecting theory you used, perhaps it could work.

I will be glad if you can use some examples also on how to calculate the currency pairs pips along with metals.

 

[Daniel Ryan]

It's truly difficult at first, but I believe one cannot escape losing if the understanding of these concepts is not ticked off the list.

 

[Layomi Layomi 2000]

The value of pip is calculated by multiplying the amount of the trade in lots by one pip in decimal form and then dividing it by the current exchange rate of the quote currency in your pair .

 

[Mary Frederick]

Automated trading is risker than any other types. If they do so, they will be the victim to those who fall in the category of bankruptcy. If you have small capital, no matter, start with it.Eurotrader’s 111% deposit bonus must enhance your trading capital.

 

[Dita Walczak]

You can grab more pips if you can identify the accurate trend. Forex offers several opportunities and if you have knowledge, you can’t make the best use of them. FXOpulence offer narrow trading spread and high leverage so traders can gain more profit.