Trading mechanics
Pip
The standard unit of price movement in forex - 0.0001 for most pairs, 0.01 for yen pairs. A pipette is one tenth of a pip, which is why most quotes carry a fifth or third decimal place.
Also called: Point in percentage · Pipette
GFN’s figure
A GFN daily loss limit converts straight into pips. On a $100,000 1 Step account the 5% limit is $5,000 - 500 pips at one standard lot on a pair worth $10 per pip, or 50 pips at ten lots.
In detail
Pip,explained
A pip is a distance, not a value. What it is worth depends entirely on position size and, for pairs not quoted in your account currency, on the exchange rate at the time.
Converting a risk rule into pips is the practical step that makes it tradeable: a dollar limit divided by the dollar value of a pip gives the stop distance a position can afford.
Related
Terms thatcome with it
Most rules only make sense next to the ones they interact with. These are the entries this one depends on.
Lot
The unit position size is measured in. One standard forex lot is 100,000 units of the base currency; mini and micro lots are one tenth and one hundredth of that.
Position size
How many lots a trade is placed in. It is calculated from the dollar amount being risked and the stop distance, not chosen first - which is the reverse of how most traders approach it.
Tick value
What one minimum price increment is worth per contract. It is the futures and index equivalent of pip value, and it converts a stop distance directly into a dollar figure.
Standard lot
100,000 units of the base currency - the full-size forex contract. On most dollar-quoted pairs it is worth roughly $10 per pip, which makes it the reference every other size is scaled from.
Spread
The gap between the bid and the ask price. It is the cost paid on entry: a position opens slightly underwater by the width of the spread before the market has moved at all.
Ready when you are
Your capital stays yours.The risk is ours.
One evaluation fee, no time limits and up to 90% of simulated profits. Pick an account size and your credentials arrive by email within minutes.
No subscriptions or hidden fees
Payouts every 14 days
$400,000 max total allocation