PIP value the value of the point

PIP value the value of the pointImagine that there is a dealer who has a commodity for the transfer of hours alarm imported from abroad at a cost of $ 10 per hour, it isNo doubt have to sell at a higher price of $ 10 to turn a profit .. but how will a profit?This depends on the profit margin of any difference between the sale price and the purchase price.If you decided to sell one-time price of $ 15 per hour and he had 1000 hours, he would get a profit. $ 5000Dollars? ¼ But what if he had been forced to sell or profit margin of hours to no more than a simpleWill be a profit on the 1000 hour = $ 250 only, because the profit margin is too narrow.If he wants to get a larger profit margin this narrow, he should sell larger quantities of watches.The time will be = $ 2500 profit is good profit obtained by selling it to ¼ 10,000 hours, if sold at a profitA large amount of hours to compensate for a narrow profit margin.And currencies also ..The prices have changed parts of the millennium in most of the time if I bought a small amount of one currency and sold itAt the highest parts of thousand Undoubtedly you will not get the glory of the profit.In order to be able to get a good profit in these minor changes to currency rates, must be soldAnd the purchase of large quantities of currency.To calculate it together to see the difference:EUR / USD =. Suppose now that the price of the euro against the dollar, 9850Any one point. EUR / USD =. I expect that the euro will rise to 9851Let's see how high the euro will win one point when we buy 1000 euros.. When we buy $ 1000 euros against which we will pay $ 985, or 985 SnepaNow you have a 1000 euros.EUR / USD =. If the price rose one point and became the 9851We will sell what we have of the euro, we will sell the 1000 euros, and we will get an interview on the new price $ 985.1.Profit = sale price - purchase price1. Ie, 10 cents = 985 to 985.1 =That any profit resulting from the sale of 1000 euros at the height of one point is 10 cents.If we assume that we sold the euro at a height of 50 points won will be $ 5. (50 points * 10. Nqthaluahdh of. (A simple profit was not worth it ..!!But what if we bought 100,000 euros instead of 1000 euros on the same the previous prices?Will buy 100,000 euros, and against which we will pay $ 98,500 to the price first.Us now 100,000 euros.. $ When we sell the euro to rise after the price of one point we will get 98,510Profit = sale price - purchase price$ 10 = 98500-98510 =. $ Means that the profit resulting from the sale of 100,000 euros at the height of one point is 10If we assume that we sold the euro at a height of 50 points won will be $ 500 (50 points * $ 10 per pointOne).A good profit .. Is not it?So see you when you sell or buy large amounts of currency can achieve a good profit, but if tradedSmall amounts of currency will not get the profit is worth the effort.As well as see examples of the former Buying You got 1000 euros 10 cents for every point.You and your purchase of 100,000 Euros got $ 10 for each point.What determines the value of the point is the size of the amount you buy or sell the currency value of any Lot, or the size of the contract.Therefore, the minimum size for trading the currency market is the 100,000 of the base currency, or close to this amount onAccording to the company you are dealing with, because the large amounts of currency that is less good earnings little changedPrices of currencies.So it is very essential to know the value of the point on each currency Sttajer with a company that will deal with it.You do not need to ask, the first things that will tell you by the brokerage firm before dealing with it is the value of the pointAll work and not telling you must be sure of that yourself.As mentioned above, the point value is calculated depending on the size of the contract depending on the amount of any amount that you buy or sellOf the currency and where this amount is greater the larger the value of the point also noted in the previous examples whenWe bought a small amount of 1000 euros and when we bought a large amount of 100,000 euros.And because the contract size varies from company to company, the point values ​​on each currency varies from company to company.Despite these differences, we have said that the contract size for the majority of brokerage firms is 100,000 ofCurrency basis, this volume Fbmthel How much will the value of the point?Answer: The value will be the point on each lot as follows:. $ Value of one point for the euro = 10. $ Value of one point of the pound sterling = 10The value of one point for the Japanese yen = $ 8 approx.The value of one point of the Swiss franc = $ 6 approx.Although these values ​​vary from company to company but it is true for most companies