PIP & PIPETTES, BID, ASK, SPREAD & LEVERAGE

What is Pip?

Pip abbreviates price interest  point .The value of changing price between two currencies is called pip.It is the ratio of price movement in forex despite having different meaning in different sector. It helps traders calculating floating profit or loss in the opened position in forex like as https://www.instaforex.com. It is counted as last decimal place of quotation representing four decimls.

For example:                       Account Opening Link https://www.instaforex.com/

EUR/USD = 1.2501⇦

What is Pipettes?

Quote currency pair without standard "4 or 2" decimal places "5 or 3 " decimal representing fractional pips is called pipettes. It is also called as customize pip formatted by brokers . For example:

Standard pip format    : EUR/USD = 1.2501⇦⇐             PIP

Customize pip format : EUR/USD = 1.25010⇐⇐           PIPETTES

What is Bid Price?

Bid Price is the buying price in a currency pair. It is highest price when a buyer or bidder would like to pay for another currency or goods in forex market like as https://www.instaforex.com/ It stands in contrast in Ask Price in forex like as https://www.instaforex.com/bitcoin_trading . It appears in the left in of the currency pair. For example: EUR/USD = 1.2501/1.2504
It means 1 EUR selling price 1.2501 USD ⇚⇚    Bid Price        

What is Ask Price?
Ask Price is lowest price in which forex traders are interested to sell their currency or goods  at the certain price through accepting price. It appears to the right of the currency.
For example : EUR/USD = 1.2501/1.2504  
It means 1 EUR buying price 1.2504 ⇚ Ask Price


 For easily understanding about  bid price and ask price It can be said that bid is the base currency and ask price is the quoted or counter currency of the currency pair. Buy means buying the base currency and sell means buying the quote currency. See here http://bdonlinefx.blogspot.com/p/blog-page.html

What is Spread?
Spread is the difference price between bid price and ask price in the currency pair in the forex market.
Suppose EUR/USD is the currency pair which exchange rate can be such as 1.2501/1.2504
Now you can see 3 digits different from each other. This 3 is the spread in forex market.

What is Lverage?
Leverage is one kind of loan provided by the brokers in forex market. That the money is borrowed  from a broker is normally used for buying an asset especially currency in forex. Different brokers provide different kind of leverages . For example : 1 : 1000  ⇚ Leverage

Leverage is the very important for forex traders. Let us explain the reason of important in forex market. Suppose you have deposited 100$  and leverage is 1 : 1000  and another trader has deposited 10000$ and leverage is 1 : 1 

By the use of 100 $ you can take advantage of 10000$ as  10000$ depositor can take advantage in forex. Because your leverage is high (100 x 1000 = 10000$) while 10000$ depositor's leverage is low (10000 x 1  = 10000$) Account Opening Link https://www.instaforex.com/