What Is A Pip?
We make money by "catching pips". For example, If you placed a BUY at 1.23540 and the price goes up to 1.23640 that means you caught 10 pips.
What Is A Lot Size
We use Lot Sizes to dictate how much we make per pip.
- .01 lot = .10 cents per pip
- .10 lot = 1.00 dollar per pip
- .50 lot = 5.00 dollars per pip
- 1.00 lot = 10.00 dollars per pip, etc
So if you caught 10 pips with a .10 lot you would make $10.00 while if you caught the same 10 pips with a .50 lot you would make $50.00