Did you try your hand at online trading? If not, this is the right time to make a start. As at this stage, there is less competition than in the upcoming years. When you start an online trading business, familiarizing yourself with online trading tools is a must. If we claim that the trade decision is dependent on these tools, it would not be wrong. Then several useful online trading tools are available in the industry to support you improve in trading skills and grow your business. The boom-crash lot size calculator is one crucial tool. It is profitable with the combination of the Pip Value calculation. Wondering what Pip Value is? First, find out this concept!
The Concept of Pip Value
PIP is a short form of <<Percentage In Points (PIP)>>. PIP is the typical minor value accountable for currency price volatility (either gain or loss). It is found in the fourth decimal place (0.0001) or as 1/100th of 1 percentage. As an illustration, consider the following value: GBP/USD = 1.52678 The above example explains that every value shows a specific number of pips, for instance:-
- The value of 1 is equal to 10,000 pips
- The value of 5 is equal to 5,000 pips
- The value of 2 is equal to 200 pips
- The value of 6 is equal to 60 pips
- The value of 7 is equal to 7 pips
- The value of 8 is equal to 0.8 pips
Moreover, in this example, the digit 7 is the value of a pip. The loss and profit will depend on the increase or decrease of this value. Let us take a practical specimen, 1.52688 relates to a rise whereas, 1.52668 relates to a dip in the value of a pip. Do you find it interesting? Let us learn some further about it.
How to Measure Pip Value?
To understand how to evaluate the pip value, we require to perform some calculations. This calculation will enable you to analyze the trading earnings and costs. It is preferable in time brackets having short intervals like 1 to 10 minutes. Let us assume that if your GBP/USD trade rises from 1.52678 to 1.52688, that indicates your currency has matured by ten pips. So, here you go, man!
What Do Boom & Crash Stands for?
Have you heard these words before? If not, endure us to discern the concept behind it. In common, Boom means to rise, and crash means drop. Boom & crash are also known as artificial indices, where indices act as a real market. Boom (500), Boom (1000), Crash (1000), and Crash (500) are its symbols. So, discern it one by one:
- Crash 1000-(500) symbol: The price sequel has a regular slide that can occur at any time between 1000-(500) ticks.
- Boom 1000-(500) symbol: Between 1000-(500) ticks, there is a ripple in the average price.
Find Out Pips in Boom & Crash
Pip is a slight modification in the price/ value of the marketplace that causes the gain and l penalty of a trade. There is no risk-taking chance to ignore a little rate change. The general formula of Pip Value calculation is: Pip Value = (One Pip / Market Value) x Size of Lot The pip value depicts the minor price movement that is quite helpful in trading. The pip value with a combination of boom & crash signal is more beneficial. While considering the boom and crash indices, the pip value formula is as under: Pips = Volatility in Purchase Rate – Selling Rate Profit & Loss = (Volatility in Purchase Rate – Selling Rate) * size of the lot. The pattern of boom & crash is not simple. While studying it, the newcomers, as well as expert traders, got confused. The concept of boom & crash consists of buying and selling at a specific interval of ticks using the spikes (large up and down price movement for a short interval). On the whole, the market movement determines whether a trader made a profit or loss. If the price of the Boom 1000 index rises, a trader will gain. If the rate of the Crash 1000 index drops, a trader will lose. The idea of eliminating the risk out of a trade is not possible. Consequently, we can utilize tools to administer us, obstruct the damage, and get the most out of each exchange. With the help of the boom and the crash, we will timely figure out the profits and take steps accordingly.
How There is a Demand for Trading Plan
Trading is a process that demands consistency and strategy to follow. If you trade on and off, you will not get the top benefits from it. You must be aware of the proper system operations and tools. Your success depends on the price movement of an asset. 
Basic Trading Plan to be Successful
In the basic plan formulation, all the main points should add up that will help to understand the trading system:
- The investment type you will invest.
- Check the trends regularly.
- Follow the massive events, news, and announcements.
- Practice all strategies one by one.
- The time intervals you’ll be working.
- Your entry signals and sites of entry.
- The amount of risk you’re taking on each trade.
- The number of trades you’ll make each day.
- Your everyday objectives.
- Spare some time for yourself.
- Keen to understand money risk management.
Importance of Doing Risk Management
Risk Management is the ultimate key to success. As when you invest your currencies or assets, you must know what and why you are investing. And what will be its outcomes? Therefore, you must have a plan to follow to avoid facing a loss.
Verdict
Owing to the above discussion, the risk management tactics used by any currency trader have a significant impact on their success record. Without a proper strategic plan, the perks of profit are not obtainable. Hence, to be successful in the marketplace, proper usage of tools is mandatory. So, practice the trading day and night!
Forex GDP provides you with profitable forex signals, so you don’t have to worry about risk management anymore. Our experts will analyze the chart patterns for you and provide you with only profitable trading strategies. We have economists on hand to watch the top central banks of the world to make sure that there are no major economic events. Always remember to trade without emotions. Happy trading!