Monday, January 22, 2007
Why does the pip difference change in forex market? -
i m new to the forex market, and i noticed over many days that the difference between the pips of USD/JPY is different on some days. usually the difference between pips is 2 and some days its 4 or 5. why does that happen? In the United States, the FOREX market is a dealer market. If customers are taking all of the risk, then the pip difference can be small, but if dealers have to put their own money up, they will put a spread in the pips so they are not taking any risk in the transaction, the entire risk falls on the customers. It gives you a signal as to how liquid the market currently is. Do note that in the United States, a FOREX dealer can quote any amount they wish without limitation. If a pip change could trigger a profitable margin call, they have been known to do that just for the commissions and to balance their risk book. That depends on the broker. You must be looking at the rates through different brokers sites, There is a wise way to look at trading foreign currencies. Learn how ordinary people can make extraordinary incomes with FREE ACCESS to a unique foreign currency trading system at http://www.homebusiness-opportunityseeke...
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