Sorry for the (possibly) repeated question, I couldn't find my answer searching.
I'm currently demoing an Oanda account and have one issue that I can't quite clear up.
When placing an order (any kind of order) the platform supplies a list of values at the bottom so you can check your order, two of which I'm not too sure about.
[ul]
[li]Units Available[/li]
[li]1 PIP[/li]
[li]Trade Value[/li]
[li]Margin Used[/li]
[li]Take Profit[/li]
[li]Stop Loss[/li]
[/ul]
I know that the value of 1 PIP is the cash amount of one tick, and that the trade value is the total cost of the trade, what I'm unsure about is their relationship.
As an example I opened a short of 10,000 units. It provided me with a pip value of 1.07 and a trade value of 15,868.70.
I let it go for three pips and lost a total of $4.
Looking at the pip values it all makes perfect sense, it adds up mathematically.
Where does the trade value come into the picture. I really don't see where or how it's being applied.
Thanks.
I'm currently demoing an Oanda account and have one issue that I can't quite clear up.
When placing an order (any kind of order) the platform supplies a list of values at the bottom so you can check your order, two of which I'm not too sure about.
[ul]
[li]Units Available[/li]
[li]1 PIP[/li]
[li]Trade Value[/li]
[li]Margin Used[/li]
[li]Take Profit[/li]
[li]Stop Loss[/li]
[/ul]
I know that the value of 1 PIP is the cash amount of one tick, and that the trade value is the total cost of the trade, what I'm unsure about is their relationship.
As an example I opened a short of 10,000 units. It provided me with a pip value of 1.07 and a trade value of 15,868.70.
I let it go for three pips and lost a total of $4.
Looking at the pip values it all makes perfect sense, it adds up mathematically.
Where does the trade value come into the picture. I really don't see where or how it's being applied.
Thanks.