Returns on Currency/Commodity Pairs - What should you be focusing on?
26 February 2016, 11:06
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Returns on Currency/Commodity Pairs
As a new or novice trader stepping into the world of forex and commodities trading, it is useful to know that not all pairs offer the same return per pip.
Infact, returns vary based on the prevailing currency/commodity price. As an illustration, find below the returns on 4 of the commonly traded currency pairs/commodities and their return per pip.
Table below is sorted in order of the currency/commodity offering the highest return per pip.
| Ref | Name | Rate (as of 26 Feb, 2016) | Lot size | Lot Type | Return per pip (base currency) | Return per pip (Pound Sterling) | Return per 100 pips (Pound Sterling) |
|---|---|---|---|---|---|---|---|
| 1 | NZDUSD | 0.67569 | 1 | Standard | 0.0000148 | 0.0000106 | 105.52 |
| 2 | EURUSD | 1.10117 | 1 | Standard | 0.0000091 | 0.0000065 | 64.75 |
| 3 | USDJPY | 112.926 | 1 | Standard | 0.0000089 | 0.0000063 | 63.14 |
| 4 | GOLD | 1230.47 | 1 | Standard | 0.0000081 | 0.0000058 | 57.95 |
*Pound Sterling to US Dollar Price used for calculations = 0.7130
