Forex Pips in Profits and Losses

By Bart Icles

It is important for foreign exchange traders to understand what pips are. In the world of foreign exchange trading, a pip is simply short for percentage in point. There are traders who refer to pips as simply points. It is important that you understand the different concepts on forex pips if you want to maximize your earnings in foreign exchange trading. It is one of the most basic concepts that you should understand from the different foreign exchange lessons you might go through.

Forex pips are simply the smallest units of price for a specific type of currency. In currency pairs or in exchange rates, it is often indicated as the last decimal point. In most currencies, it is often 0.0001. For example, if you have bought USD/EUR at 0.6664 and sold it at 0.6676, then you have made 12 pips. If you have bought USD/EUR at 0.6664 and sold it at 0.6656, then you have lost 8 pips. A common exception is the USD/JPY currency pair because there are only two decimal places in this pair. Therefore, a pip in this pair is equivalent to 0.01. This simply means that if you have bought USD/JPY at 89.84 and sold it at 89.99, then you have earned 15 pips.

It is important for you to understand the concept of pips in forex trading because they are basis for calculating your profits or losses in foreign exchange trading. Making 12 or 15 pips can already mean a lot of money. Losing more than pips should already be a warning signal for you because you might be in for a large one-time loss.

But how exactly are forex pips used in trading? Currency prices fluctuate all the time, and this is why the value of a pip can change from time to time. What is important is that you know how much you have earned or lost in terms of pips so you will know how much value they have although prices might change every single hour.

For example, the exchange rate for USD/AUD (US dollar/Australian dollar) is 1.0762. The value of a single pip for a single dollar would be 0.0000929 and this is indeed a pretty tiny amount of money. A single pip for a thousand dollar investment would be .0929 or $0.09 per pip. But if your initial investment is $100,000, the pip value would change to $9.29. This simply means that if you have made 12 pips, you have actually earned $111.48. Therefore, forex pips become more significant with large sums of investment. - 23212

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How do you become a phenomenal forex trader? Also, come learn how to determine if forex day trading is for you.

Ways to Invest in Oil and Gas

By Terry Stanfield

If you are interested in oil and gas investing there are three primary ways you can go about starting your investment. These ways include investing in companies, mutual funds, and commodities. You can make a lot of money in this industry if you are smart about your investments.

Investors consider gas investments to be safe. This is because there are so many ways that someone can invest their money in the industry. You are not limited to only buying stock in a business but there are so many other ways to invest too. It is easy to diversify your portfolio of investments with only oil and gas in the many different ways you can invest.

The primary way to take advantage of oil investments is through company stock. If you find a drilling company that you want to invest in because you believe they will strike oil some time soon you can purchase their stocks. There are tons of companies out there who drill for oil. There are independent companies and medium-sized businesses and more. It is important to know that stock with gas investments does not always provide the largest return on investment.

Mutual funds that have a primary focus on energy is another way you can look at oil and gas investing. A mutual fund in this field may focus on the oil and gas but have stock in many companies in the field. This fund may include large companies and independent companies too. One type of a mutual fund is a drilling fund. This is broken down into two fields; exploratory and developmental drilling. Exploratory drilling is as the name suggests, exploring to find oil and gas. Developmental drilling uses wells that already exist. It monitors the development and production limits.

Gas investments can also include commodities. This includes things like royalty funds, leas acquisition funds, and even combination funds. There are many ways commodities are offered for investments in the oil and gas industry.

There are many ways you can invest in the oil and gas industry. If you are interested in oil and gas investments you should consider looking into the different methods. You can invest your money in company stock, mutual funds, and even commodities. Some investors make a huge amount of profit and some don't. Any type of investing is risky so you should do plenty of research before you do anything with your investment. - 23212

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Visit Evans Energy's site for information on investng in oil and gas and oil and gas investment benefits.

6 Things To Know About Extracting Oil And Natural Gas

By Terry Stanfield

Oil and natural gas drilling are often thought of as one concept but can be two different things. When a company is drilling for natural gas, they may hit on crude oil. Crude oil is refined to make gasoline, whereas natural gas is used for a variety of different purposes. Companies that are oil drilling are looking for one type of natural resource for fuel as well as other purposes.

People who invest in well prospects often think that they are drilling for either gasoline or oil and do not often know the difference. When an oil company drills into the earth, they are looking for natural resources that can be use for fuel or for other purposes. Crude oil, for example, is not only used for gasoline, but for petroleum and petroleum based products.

One thing that people need to know about oil drilling is that the well can turn up with natural gas, crude oil or it can turn up dry. A dry well is one that yields no natural resources, although it may be explored again at a later time.

Often, when drilling for natural gas, a company will find crude oil. This is also a valuable commodity as crude oil is needed to make petroleum based products as well as gasoline.

Oil and natural gas drilling can yield both natural gas or oil. Both are considered to be valuable natural resources that are a necessary part of life as they can be used for fuel for heating as well as use in gasoline to run cars.

Crude oil can be refined into gasoline by an oil refinery process. About 17 percent of a barrel of crude oil will be used for gasoline.

Oil drilling takes time as well as high powered equipment. Most investments of this nature are made by a group of investors who share in the costs, along with the oil company.

Both oil and gas drilling can yield profits for investors who invest in a company that drills in a proven well or finds a new well. Finding a new well during drilling yields very high profits for investors.

Drilling for natural gas as well as oil drilling are time consuming but can yield high profits for investors. Oil and natural gas drilling takes place in the United States as well as all over the world. Both oil and gas are natural resources that are used for a variety of different purposes, including heating fuel, petroleum products and gasoline. - 23212

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Visit Evans Energy's site for information on oil and gas exploration and oil and gas investments.

Six Ways to Assess a Potential Oil and Gas Investment

By Terry Stanfield

When you look at oil and gas investing there are many ways you can look at the market and the potential investment. You should do plenty of research so you know you are making a good decision with your money. Here are 6 things you can look at to be sure you are about to make a good decision or you should back out.

1. The company. If you are looking into investing in a particular company you must look at everything about them. Check out the history of the company, the executives and board members, and the description of the business. It is also important when researching a business for oil investments to check out the locations and subsidiaries.

2. If recent mergers and acquisitions have occurred you need to research both of the businesses that have combined. Find out about all equity, ventures, and everything about the businesses involved.

3. Research the debt. Debt is a really big deal when it comes to gas investments. How much money does the company owe to other investors, banks, and others. The debt should be less than half of the revenues. This should include liabilities for the company also.

4. Competitors. When you are assessing oil and gas investing it is important to find out about the key competitors. Does the business have a foot forward in front of the other competitors?

5. The market placement. When you look at oil investments it is important to look at the entire market. You cannot just research the investment you are looking at but you need to be able to look at the overall prospect of the market. Where does the company you want to invest in sit with the entire market? You should compare numbers and feel the company is doing very well before you get started with your investment. Assess the strengths and weaknesses of the company of choice versus the competitors and see where they all stand.

6. Potential profits. If you invest in the company of choice what is the potential of profit you stand to make? You will need to look at the history of the gas investments and how much money other people made on the profits. Be sure a profit is what is being made and people are not just breaking even.

When it comes to oil and gas investing there are many ways to assess the investment. You need to look at the company as a whole. However, you also need to look at the entire industry, including the competitors, the products, profit, and more. - 23212

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Visit Evans Energy's site for information on investng in oil and gas and oil and gas investment benefits.

Stock Investing 101

By Gary Hamilton

As luck would have it for these persons, laying out money isn't too complex to get into, and as a good deal of confident investors can tell you, it's just a matter of getting started. Once you have tried a couple of investments that are good for beginners, investment noesis begins coming rapidly. There are more than one investment opportunities that are ideal for introductory time investors, and primary timers could just be amazed to learn that they are already investing and don't even know it.

We all acknowledge or have heard of an individual who had built up a really good retirement fund, they'd sunk all of their cash for years into their investments in the stock market and relied on having plenty of money when they got older. With the radical swings in the market over the past few years, it's no surprise to hear that such a good deal of of these humans have lost everything. One of the greatest reasons is that they made one of the largest laying out capital faults that there is, they put all of their eggs in one basket.

The real artwork of laying out capital is knowing when to trade an investment. Any individual with some money may buy any investment, like a publicly swapped fund or a stock, nevertheless, successful investors acknowledge that a good profit from such an investment may only be made when the investment is sold. As a subject a fact the firstborn job of an capitalist is to defend his capital or important invested, while the second one is to make galore net income. So how does one go when it comes to doing a good job laying out capital successfully? The answer is by adhering to a rigorous trade discipline.

So what's this system? When you begun on a stock you give another individual the correct to buy the stock at a sure price on or before a given date.

It is tempting to jump in a couple of just because they occur to be a huge dividend to their share holders. It is whether or not the establishment is not sound and growing there is genuinely not much of a point to doing this. - 23212

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