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How To Trade Higher Pip Values

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Mosleur Rahaman Riad
337
Mosleur Rahaman Riad 2013.01.06 19:53 
Hi all,

I have mainly been trading EUR/USD, AUD/USD and GBP/USD which all have the same sort of Pip value 0.0001 and so I understand how this relates to the spread charged by the broker. However I was considering trading some USD/JPY but the pip value is 0.01 but the spread charged for all currencies is around 2.5.

So I'm thinking the spread charged on USD/JPY is really going to cost 10 times more than the other currencies if I want the same sort of profits as the other currencies, as the daily movement is much lower in pips?

If so i'm curious how or why other people trade this currency when the charge is so much higher, is it easier to predict or less volatile?

Thanks

phi nuts
2184
phi nuts 2013.01.07 14:12  
zzzBhuyian:
Hi all,

I have mainly been trading EUR/USD, AUD/USD and GBP/USD which all have the same sort of Pip value 0.0001 and so I understand how this relates to the spread charged by the broker. However I was considering trading some USD/JPY but the pip value is 0.01 but the spread charged for all currencies is around 2.5.

So I'm thinking the spread charged on USD/JPY is really going to cost 10 times more than the other currencies if I want the same sort of profits as the other currencies, as the daily movement is much lower in pips?

If so i'm curious how or why other people trade this currency when the charge is so much higher, is it easier to predict or less volatile?

Thanks

What makes you think that " ... the spread charged on USD/JPY is really going to cost 10 times more than the other currencies if I want the same sort of profits as the other currencies ...

The spread of USDJPY is 2.5 pips and NOT 250 pips. Don't compare it with spread of EURUSD, AUDUSD, or GBPUSD. 

Just trade it on demo and you will see that on average they make 100 pips movement a day. 

Tonny Obare
28984
Tonny Obare 2013.01.07 15:12  
Most pairs with bigger spread are more volatile than those with small spread so if you catch the trend at the right time you are more likely to collect a big profit within a shorter time than the docile ones but the same is also true for losses.
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