All language subtitles for 2. currency pairs, quotes _ pips

the unit for measuring the
change in value between two

is going to be the foundation
of your risk management. So

second decimal place. Some
brokers now quote currency

later on you're going to learn
the advanced concepts of risk

and then the minor pairs are
sometimes referred to as the

management with an entire
module dedicated to just this

is equal to one 10th of a pip
and you must must develop a

strong understanding of pips
and how to measure them as this

however, so this is why they
are quoted against each other

known as pipettes or micro pips
and they are equal to a 10th of

focus probably just on these
USD pairs alone because they

swipe and attack with their
their heads and the horns

value because bears swipe down
with their paws right pips are

Individual currencies don't
have an absolute value,

and we put them in pairs. So,
we pair these eight currencies

places so in that case one pip
is equal to 0. 01 right so you

currencies which are usually
the fourth decimal place but

pairs to five decimal places
for added precision where the

there are some exceptions like
the Japanese where a pip is the

pairs and three on the Japanese
yen pairs to give us that extra

so one pip equals not. 0001 now
gets a little bit tricky

if your dollar was then quoted
at one spot 10357 that would be

key points we have covered in
this lesson, we focus on the

pip quiz if you're a dollar
rises from 1. 1035 to 1. 1040

crosses and they are all of the
remaining pairs out of those 28

into every combination possible
which makes 28 tradable

short and if we you know say we
are bearish on a particular

the yen pairs really that do
that so let's do a quick little

yen, the Great British pound,
the Canadian dollar, the Swiss

value relative to the quote
currency the dollar right so in

likely find that you will spend
the majority of your time and

okay so pips they stand for
percentage in point and they

Frank, the Australian dollar,
and the New Zealand dollar.

So, Euro dollar or Aussie
dollar for example and you will

ideally buy back at a later
date at a much lower price to

then lock in that profit and we
will short pound dollar if we

are referred to as fractional
pips which are more commonly

upwards right and if we sell
something we say we are going

and they now actually go to
five decimal places on most

position and you can make money
when the market falls so in

smaller number that is the
pipette right and which in this

Now, most Forex brokers, they
quote currency pairs beyond the

buy something we say we are
going long or taking a long

standard four and two decimal
places that we just looked at

asset then we think that it is
going to fall and depreciate in

is that? Yep, it's a fifteen
pip rise because remember,

rises from 140. 90 to 141 spot
zero five what movement in Pips

provide extremely reliable and
frequent trading opportunities

position and if we say we are
bullish then we think that that

fifth decimal place is called a
pipette or micro pip and this

case that would be equal to
nought point two pips and then

of the amount that the price
changes so when reading a price

asset is going to go up in
value so remember bulls they

down to 1. 1005 then that
indicates what a 30 pip fall

plans. The major pairs are the
pairs which contain US dollar.

that do not contain the US
dollar. Yeah in training if we

depending on your trading style
but like I said, excuse me,

you want to write that down and
the correct answer is five pips

that case we make sure that we
are selling high and then

yes you are correct hopefully
alright last one if pound yen

okay pretty simple let's do
another one if Euro dollar

rises from sorry if Euro dollar
falls from 1. 1035 all the way

program when you start to build
out your own personal training

quote currency at the same
time. So in simple terms if you

how many pips has that gone up
by so pause the video now if

long or taking a long position
and ideally we want to be

strategy that you're going to
learn, you will only need to

can see the the the subtle
difference there but it's just

3035 US dollars at that point
in time so if you have some US

we'll talk a lot more about
this at a later point in the

expect the pound to weaken
against the US dollar okay pips

currency pair is referred to as
going short or taking a short

focus on just one pair alone or
potentially a few pairs

currency pairs but as I was
saying earlier, with this

added precision in quoting
those exchange rates and these

dollars and you want to buy
some pounds with them you would

quote a pip is usually the
fourth and last decimal place

go long this simply means that
you are buying the base

selling dollars. So you would
buy the pair if you believe

appreciate and gain value
relative to the quote currency

the US dollar and you would
sell the pair and go short if

that you narrow your focus onto
just one or even a few pairs

purchase just one pound so the
base currency on the left in

would buy the pair if you
believe that the pound would

an increase of half a pip So,
just to quickly summarize the

price for a profit so in that
case we expect the pound to

strengthen against the US
dollar and in selling a

buying low and then selling
back to the market at a higher

fifth decimal place which is
usually visually displayed as a

or the other way round let's
say that you have some pounds

3035 US dollars for every pound
that you then sell Now remember

focus on are Euro dollar, pound
dollar, Aussie dollar, and

currency and you are
simultaneously selling the

literally a daily basis on even
just one currency pair alone.

So when pairs are quoted the
currency on the left hand side

what this essentially means is
that one pound is equal to 1.

eight major currencies, the US
dollar, the Euro, the Japanese

and really spend time mastering
those. Now, we're going to

one so for the example if pound
dollar is quoted as 1. 3035

you think the base currency the
pound will depreciate and lose

when you're trading if you buy
the currency pair pound and you

that the base currency so the
the Great British pound you

So, if you want extraordinary
results, it is highly advised

rate this indicates how many
great British pounds can

pound yen but yeah, don't worry
too much about that just now.

have to pay 1. 3035 US dollars
for every pound that you want

that you want to buy dollars
with then you would receive 1.

some of the main pairs that
most traders in our community

a pip. So if your dollar was
quoted at 1. 10352, then the

the right is called the quote
currency so the pound exchange

upgraded the old cable to a
state of the art fiber optic

Japanese gen pairs, they only
go out to two decimal places.

and Dollar Yin as Ninja Now,
with the photon strategy, you

line hence the ingenious name
fiber then we have Kiwi Dollar

times, an overwhelming
abundance of opportunity on

fiber optics, the exchange rate
between the Great British pound

what essentially traders
referred to as but then when

Sterling and the US dollar, it
was actually transmitted across

nineteenth century, before the
invention of satellites and

trades in the later lessons now
paired up in every possible

the Atlantic Ocean via a
submarine cable. So, this is

dollar, they are commonly known
as minors or crosses. Now You

may hear many of the major
pairs referred to by traders

we're going to cover specific
instructions on executing

deliver a total of 28 tradable
currency pairs and of these 28

broker will take care of this,
you know, the simultaneous

pairs those that contain the US
those are referred to as the

will literally either just
click buy or sell on the pair

majors. And the remaining pairs
that do not contain the US

go along pound dollar you are
buying pounds and you are

trade of talk buying a currency
pair is referred to as going

referred to as cable and this
is because back in the mid

dollar, a simply Aussie, pretty
simple, pound dollar is often

if that can be a little bit
confusing, fortunately, your

with certain nicknames.
Australian dollar versus the US

probably when some of you were
actually born traders simply

instrument just like a so on
your execution software you

as a whole so they make it
super simple for you now don't

buying and selling at the same
time, they take care of that so

Aussie dollar, you would be
selling Australian dollars

combination the major eight
individual currencies they

and when bears attack, they
swipe downwards with their

Aussie dollar you would be
buying Australian dollars while

because there are some
exceptions to the rule like the

simultaneously selling US
dollars so this means that you

short and you would say that
you are bearish on a pair if

currencies so essentially pips
are what we refer to in terms

new to trading it can be a
little bit confusing if it's

would profit from how much the
Australian dollar appreciates

Japanese gen pairs because they
only go out to two decimal

so it goes up in value in
comparison to the US dollar and

simply as Kiwi Dollar Cad as
Looney Dollar Swiss as Swissy

are the unit for measuring the
change in value between the two

together just on its own
there's no way of putting a

discuss this in much much more
depth in a later module in the

purchase one US dollar or how
many US dollars you need to

were to buy the Aussie dollar
in trader talk you would say

relative value of a currency
unit against the unit of

if you were to sell the pair
this means that you are going

that you are going along the
Aussie dollar. And another term

you think it is going up. So
when you buy currency pair

are a trader is bullish. So you
say that you are bullish on a

which is commonly referred to
as Aussie dollar. So if you

another currency at any given
time so therefore always quoted

that you can value them is you
have to compare them to that of

cost and those low volume
exotic pairs now an individual

currency it does not have an
absolute value so the only way

in pairs a currency pair is
simply the quotation of the

liquidity which is vital when
you need to exit a trade. There

is always called the base
currency and the currency on

the Euro was introduced not too
long ago in the late 1990s,

price on it essentially so An
example of a pair would be AUD

currency pair or whatever asset
class you are talking about if

course when you start to put
your trading plan together but

will find that there is
literally an overwhelming at

another currency right you
always have to pair them

bat. Now, I would strongly
advise that you stick to the

paws, alright? But anyway, if
you were to sell the pair,

right? So, as a currency
trader, you may be presented

New Zealand and the D stands
for the dollar. Pretty simple,

that you can simply focus on
the pair as a single training

worry if it seems a little bit
confusing at this point because

definitely not least, the New
Zealand dollar. Now, currency

highest trading volume in the
FX market and high volume means

with the opportunity to trade
more obscure exotic currencies

symbols, they always have three
letters where the first two

third letter represents the
name of the currency. So, take

while simultaneously buying US
dollars with them, right? Now,

the first time you've heard
some of these terms so an easy

management process. So, as a
Forex trader, the first thing

is currency. Now why there are
lots of currencies that you can

that when bulls attack they
swipe upwards with their horns

dollar, the Canadian dollar,
the Swiss Frank, and last but

way to remember the difference
between bullish and bearish is

the Japanese yen, the Great
British pound, the Australian

this case the pound no matter
what it always has a value of

currencies of the world. The
United States dollar the Euro,

you'll need to learn about is
your product, right? And that

In this lesson, we are going to
cover what currency pairs are,

which of the many currency
pairs do we actually choose to

measure them, because this is a
vital part of the risk

trade and focus on, how to read
a forex quote, and then we're

that will become a common part
of your vocabulary now that you

the New Zealand dollar for
example, NZD, the NZ stands for

you think it is going down now
I know you're probably a bit

versus USD. So the Australian
dollar versus the US dollar

is simply no to risk a capital
taking a position on those high

going to finish off by looking
at what pips are and how we

people are trading those
currencies leading to higher

one topic alone. I

that transaction costs are
generally lower and the more

major eight listed here as
these currencies have the

such as the South African Rand,
the Mexican Peso of the Thai

identified the country and most
of the time but not always, the

trade? Most active traders
focus on the eight major