Smallest Currency Unit (point / pip) and Contract Size

Blogging and Forex ZRGRZMXMFVK3,Smallest Currency Unit (point / pip) and Contract Size
Point (pip) is the smallest unit of price movements in the forex. One point (pip) for GBP / USD is 0.0001 while the single point for the pair USD / JPY is 0.01. Example: Pair GBP / USD, the movement of 1.8500 to 1.8550 is 50 points.
The value per point (pip) depend on the number of contract size (lot) and the currency used.

Contract Size (Lot) is the smallest amount in forex trading. In general, the contract size (lot) which is often used is the Standard Lot, Mini and Micro Lot Lot Standard Lot is $ 100,000, Lot is $ 10,000 Mini and Micro Lot is $ 1000.
If your forex broker supports the Standard and Mini Lot, then that means you can trade with a number multiples of 100,000 and 10,000. For example: $ 30,000, $ 120,000, and others.

Quote / rate currency
Forex quotes consist of the price of 2 prices, ie lower price (Bid) and a higher price (Ask / Offer).
Bid is the price you sell to forex broker (dealer) or the price at which forex broker (dealer) will buy from you. While Ask / Offer is the price you buy from forex broker (dealer) or the price at which forex broker (dealer) will sell to you. Bid is generally lower than the Ask.

Bid and Ask price difference is the Spread. The smaller the spread dealers more profitable forex trader.

Quote from forex looks like this:

forex quote

Quote namely EUR / USD Bid / Ask: 1.2293/96. Means the selling price to your broker and the buying price of 1.2293 is 1.2296 broker. 1.2296-1.2293 spreads is 3 points.

Example:
You open BUY (Long) EUR / USD at price 1.2296 (Ask), then if the bid is now showing the price of 1.2293, it means you're still a loss of 3 pips. Therefore, every time you open the position will certainly take place minus a spread (ie for example 3 for EUR / USD). To get the profit you have to wait until the price bid on the table more than the price UP 1.2296

Please note:
When you open a Buy position (Long), that means you open a position with the ask price, and then will be closed (close / liquid and including stop loss and profit targets) using the bid price.

When you open positions Sell (Short), that means you open a position with the bid price, and then will be closed (close / liquid and including stop loss and profit targets) using the ask price.

Position Open to Close (TP * / SL **) with
Buy (Long) Price Ask Price Bid
Sell ​​(Short) Price Bid Price Ask

* TP = Take Profit
** SL = Stop Loss