thread: New to Forex looking for advise

I am in the UK.

I trust I do become great at Forex to, I like trading.

I will do some more trading on monday and learn a little more from my demo account.

Hello I began a Demo account trading 2 hours ago.

I'm working on GBP/USD right now and made some cash.

Why is it when I buy there is a margin of 4 PIPS?

In order for me to earn cash the USD must shed 5 PIPS.

Where do these PIPS go ?


Thanks

Hi Marc, and welcome to cliqforex.

The 4 pips that you refer to are called the spread, not the margin. Although I can understand your confusion because margin sounds like margarine that's a spread!

Seriously, the 4 pips is the gap between the bid price and the ask price. The spread causes you to already be in the hole using a 4 pip loss the minute you enter a new trade. Your commerce must then move 4 pips simply to return to breakeven. 5 pips or more and you are in profit.

Where does this go? It goes to a broker's pocket. That is how they get paid for the support that they provide you.

Again, welcome, and ask as many questions as you'd like.

Dial