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The Basics |
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What is
DOLLAR PER TICK
Trading |
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How does
DOLLAR PER TICK
work |
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Components of
DOLLAR PER TICK
Trading |
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| How does DOLLAR PER TICK work? DOLLAR PER TICK takes all the complicated calculations of investing out of the equation.
If you think a product is going to rise, then BUY the product and close the trade later at the higher price and make a profit from the difference. With DOLLAR PER TICK Trading you can also SELL the product if you feel the market is going down and close the trade later after the price has decreased, profiting again from the difference in price. It is as simple as that. However, if the market goes down after you had a BUY trade you would incur losses on the trade.
The uniqueness of DOLLAR PER TICK Trading is that you can actually choose the dollar amount of the trade per tick. A tick is the smallest price movement of a particular product. For instance if you decide to buy Gold, the tick size is 0.10. Let's say you decide to invest US$10.00 per tick and BUY gold. If the market goes up 10 ticks from 890.50 to 891.50 as you close your trade, you end up making US$100.00 on the trade. It's as simple as this.
PIPTRADE also has a unique feature called Amount to Risk, which allows you to easily select the money you are willing to lose on the trade. For example, if you set your amount to risk at US$50 and the market goes against your trade, you still only lose US$50 on that trade. This enables you to have a limited downside and unlimited upside.
It's simple, easy, and most important totally transparent to you the client. No commissions on the trades and no hidden costs.
We feel the easiest way to understand this concept is to show you an example: |
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