If a trader tells you that they made 100 pips profit, you don’t learn anything about their money situation. To know the size of one pip in greenbacks in this situation, multiply 0.0001 by the lot size.

To calculate profit or loss from pips where the dollar is the quote currency, you just need to understand that one pip is $0.0001 x lot size. All of this may seem confusing at first impression but anybody who starts trading will extremely soon understand what a pip means in practice. Currency trading pips are a handy tool for measuring and recording price movements in currency trading.

Beginning with a micro account does not mean you can skip the demo stage. It’s very important to start to know both of your system and your broker’s platform in demo mode before going live. This cuts down on the probability of making technical mistakes or mistakes in the execution of your system in your real money account, provided of course that the platform is the same in demo as for the real market. To get the maximum from a micro currency exchange account it’s very important to have a system that doesn’t involve enormous risks. Usually you’ll be using high leverage on the account or trading more than one lot, so that you maximize the amount that you can make from winning trades. This indicates that any loss is likely to have a large impact. Therefore you need a system that only makes little losses. Don’t choose a system with a very high win rate because it is probable that the losses, when they are doing occur, will be heavy. This will wipe out a trader using maximum leverage in a micro account. Of course, no forex system is totally foreseeable, but statistically a little account balance will have a better chance of surviving that way. Used in this fashion, a micro foreign exchange account may be the easiest way to get started with newb currency trading.