Expanding into Gold/Silver/Oil/SP500

Hi there,

I know this is 'Forex' Factory but I figured I can't be the only one with a question around pips in Gold, Silver, Oil and SP500.

I have an indie which shows ATR(20) in pips, but for Gold and Silver for example they show as 189101 pips and 7791 pips respectively!

How do I meaningfully convert my Forex understanding into other instruments please?

Thanks in advance
Ath

I'll take a shot at this. It all depends on the unit of measurement.

What are they calling a pip?

An ounce of gold is $1700 (give or take). So if you trade 100 Ounces, that's $170,000 of total value you're trading. So $1 move means $100 to your PNL, but Gold moves $20-50/day sometimes, so you could make $2,000-5,000 (or lose that amount) if you traded 100-lot sizes in that instrument. So the idea is you need to adjust your positions size based on how much you can afford to lose. Don't get caught up in what a pip is... know what you could make/lose in any given day and decide how to size your position. You may find out that a futures trade in Silver is WAAAAY more risk that you're willing to take. Try Oanda or some other service that will let you trade micro lots of these instruments while you get the hang of it.

Thank you for the reply.

I think I talked myself into it being more of a problem than it really is!

Regards
Ath