To trade some of the most popular currency pairings, the 50 Pip Per Day Strategy forex method created. This method used by traders to identify the trading instrument’s early market movement. The method typically works best with EUR/USD or GBP/USD. You may explore in an effort to combine it with other tradable assets, though.

## What is Pips in forex trading?

The final decimal place represents the smallest price shift in forex trading. Given that the majority of significant currency pairings, including those involving the USD, EUR, and GBP, quoted to four decimal places, a pip in this case represents a change in price of 0.0001. For instance, the GBP/USD exchange rate changed by one pip if it went from 1.40 to 1.401. Comparatively, just two decimal places quoted for currency pairs employing the Japanese yen (JPY). A pip in this context refers to a price change of 0.01. For instance, the GBP/JPY pair moved five pip if it changed from 150.00 to 150.05.

Spread betting and CFD trading are two examples of financial tools you might use to trade on the currency market. Opening positions based on the expectation that one currency will appreciate against another involved in this. For instance, depending on which way the market is moving, every pip or point that a currency’s value fluctuates will either result in earnings or losses for the trader.

### How does 50 Pip Per Day Strategy Works?

A fundamental idea in foreign exchange is the pip. A currency whose value expressed in relation to another currency bought and sold by forex dealers. These currency quotes displayed as bid and ask spreads, both of which are accurate to four decimal places.

Pips units used to measure exchange rate movement. The smallest whole unit change for most currency pairs, which stated to a maximum of four decimal places, is one pip.

#### How to Determine 50 Pip Per Day?

The **currency pair**, the exchange rate, and the trade value all affect how much a pip is worth. The pip is fixed at.0001 when your forex account is financed with US dollars and USD is the second of the pair (or the quote currency), such with the EUR/USD pair.

In this instance, adding 0.0001 to the trade amount (or lot size) yields the value of one pip. Therefore, multiply a trade value of, say, 10,000 euros by.0001 for the EUR/USD pair. $1 is the pip value. You would make a profit of 10 pip, or $10, if you bought 10,000 euros against the dollar at 1.0801 and sold them at 1.0811.

**50 Pip Per Day Strategy**

On the other hand, the pip value also includes the exchange rate when the USD is the first of the pair (or the base currency), as it is with the USD/CAD combination. A pip’s size is calculated by multiplying the trade amount by the exchange rate.

For instance,.0001 multiplied by a typical lot size of 100,000 and a USD/CAD exchange rate of 1.2829 yields a pip value of $7.79. If you purchased $100,000 USD at 1.2829 and then sold it at 1.2830, you would have earned a profit of 1 pip, or $7.79.

A prominent exception to the four decimal place rule is the quotation of Japanese yen (JPY) pairs with two decimal places.

The value of a pip for currency pairs like the EUR/JPY and USD/JPY is equal to 1/100 divided by the exchange rate. One pip is equal to 1/100 132.62 (for the EUR/JPY example) or 0.0000754. The price of one pip would be $7.54 with a lot size of 100,000 euros.

##### What Exactly is 50 Pip Per Day Forex Trading Technique?

The 50 pips a day Forex strategy is a general approach that operates in one-hour increments and seeks to profit from roughly 50% of a currency pair’s daily movement. This kind of strategy similarly concentrates on using a small number of currency pairs. GBP/USD and EUR/USD are two examples of these pairs.

Other currency pairs are acceptable, but in order to benefit from this approach, which does not need examining indicators like some other methods, you must make sure that the pair you choose has a daily range of at least 100 pip.

The 50 pip per day Forex strategy is a day **trading technique** with a fairly straightforward design. Its simplicity, like that of many other day trading techniques, gives rise to a rather solid and user-friendly strategy for novice Forex investors and traders.

This method is not only intended for day traders, but depending on the execution style, it may also be effective for swing traders. If you are a swing trader, you need be particularly cautious when examining your candlesticks to ensure that you can realize the intended financial benefits.

###### How do You Carry Out this Plan of Action?

Executing a 50 pip a day Forex strategy only requires a few quick steps because there are fewer trading strategies to review.

The first thing to remember is to set your chart’s 1 hour candlestick to 7 AM GMT. For this technique to profit from daily spreads, this timezone typically works well.

## Is this Tactic Successful

If executed properly and with discretion, this tactic is profitable. The 50 pip per day forex technique can provide income over the long term, but if you don’t want to do this manually every day, you may prefer to invest in an algorithm that uses a different method.

### Benefits of this Approach

This tactic involves a certain amount of “set and forget.” Nothing else needs to be done until the next day after the initial daily set up.

With this method, you cannot overtrade. There can only be a maximum of two trades each day if you choose to use both pairings, as there are only two pairs used.

#### Drawback this Approach

This is not for you if you prefer daily transactions more frequently. Low trades may be advantageous to some traders, but if you prefer to trade a variety of pairs with a wide range of movements, this approach is not for you.

With this method, the potential profit is constrained. Your profit will never exceed 50 pips every day, which is better than nothing, but other tactics can **move more pips** and could increase your Forex portfolio’s overall profit.

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