How is money made trading currencies?

Currencies are traded on a point or pip system. A pip is another word for a point in the fx trading arena. Traders are attempting to capture points. Depending on the currency, each point is worth a different amount. As an example ; the Brit Pound is worth about $10 per point that is traded per lot. If you trade one lot and capture forty points, you made $400. If you trade ten lots and capture forty points, you simply made $4,000.00, for example.


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