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What is a Pip in Kenya

What is a Pip in Kenya

What is a Pip in Kenya revealed. We tested and verified pips in forex trading for Kenyan traders.

This is a complete guide to pips in Kenya.

In this in-depth guide you’ll learn:

  • What is a pip
  • How many dollars is 1 pip equal to?
  • Our recommended forex brokers with the best pips?
  • How to compare forex trading brokers against each other?
  • How to calculate pips as a Nigerian trader?
  • How much are 100 pips worth?
  • What is the difference between pips and pipettes (BPS)?
  • How to calculate pips with lot sizes?
  • Which forex brokers offer a low minimum deposit of $5 (604 KES)?
  • Which brokers offer a signup bonus for first-time traders?


And lots more…

So if you’re ready to go “all in” with pips for Kenyans

Let’s dive right in…

Updated : October 26, 2022

The Definition of a “Pip” in Forex Trading

👉 Price interest point, or percentage in point, is to which the abbreviation “Pip” refers. According to convention in the foreign exchange market, a pip is the smallest possible change in the value of a currency exchange rate.

 

👉 When quoting currency pairs, market participants often use four decimal places, with a single pip denoting the value of the fourth decimal place. The value of a pip is thus one basis point or 1/100 of a percent.

How do Pips Work?

Pips

👉 A point of interest (pip) is the unit of measure used to indicate the magnitude of a movement in the exchange rate of a currency pair, with the value determined by utilizing the fourth decimal place.

 

👉 However, the second decimal place determines the pip when JPY is included in the currency pair. Kenyans must remember that the value of a pip depends on the size of the trader’s position and not on any underlying currency value.

 

👉 The profit or loss of a forex position is measured in terms of the pip value, which is the price ascribed to a one-pip change in a forex transaction.

 

👉 Because of the insignificance of individual pips, foreign exchange is transacted in lots, mini lots, and micro-lots, respectively, of 1,000, 10,000, and 100,000 respective currency units.

 

👉 A pip’s nominal value might be little, but when leveraged, it could represent a considerable risk to an investor’s capital.

 

👉 The forex pair, the amount being traded, and the exchange rate all play a role in establishing the pip value. To determine the value of a pip, divide one pip (often 0.0001) by the exchange rate at the time.

 

👉 Then, multiply the result by the lot size, which is the number of base units swapped. That means that due to differences in exchange rates, the value of a pip will fluctuate depending on which currencies are being traded.

 

👉 However, when the US dollar is used as the quote currency, the value of a pip remains constant at $10 for a lot size of 100,000. Online traders seldom need to calculate the value of a pip since their broker does it automatically but doing so might be useful.

 

👉 Many people use the term “tick” interchangeably with “pip,” however a pip is not a perfect unit of measurement. For instance, a tick on one investment or financial instrument could be recorded in 0.0001 increments. In contrast, the same action on another might be recorded in 0.25% steps.

 

👉 This expression is often used for the word ‘pipette’ in the foreign exchange market to indicate a recalculation of the fifth digit.

 

👉 In the context of measurement, a pipette represents a change in position that is precise to the fifth decimal point. In contrast, a pip represents precision to the fourth decimal place. Therefore, a pipette is called a “fractional pip” since it equals one-tenth of a pip.

 

👉 For Japanese Yen-denominated foreign exchange rates, a pip corresponds to the second decimal place, whereas a pipette corresponds to the third.

How is a Forex Pair quoted in Kenya?

How is a Forex Pair quoted in Kenya?

👉 The US dollar and the Canadian dollar (USD/CAD) are two examples of currency pairings that are often used in financial transactions. The first currency is called the base currency, while the second is called the quote currency or counter currency.

 

👉 The USD/CAD will equal 1.2500/1, or 1.2500 if it costs $1.2500 (Canadian dollars) to purchase $1 (US dollar). The US dollar would serve as the “base” or “counter” currency, while the Canadian dollar would be used in the transaction.

 

👉 The rate is shown in Canadian dollars, and you would need to exchange 1.25 Canadian dollars to purchase one USD.

 

👉 Some currencies, however, are quoted in terms of the US dollar. For example, if the exchange rate between the British pound and the US dollar is 1.2800, then the same amount in US dollars would be $1.2800. GBP/USD indicates that the pound is the starting point for conversion.

 

👉 The euro is often used as the “base currency” in currency exchange quotes. Thus, if the current exchange rate of $1.1450 for one euro is given, the price of one euro in US dollars is $1.1450. To put it another way, a broker may give you a price of $1.1450 to trade EUR/USD.

What is the Spread in Forex Trading?

What is the Spread in Forex Trading?

👉 The word “spread” may refer to various things in finance. For example, it typically refers to the difference between two prices, rates, or yields as a “spread.” The spread in forex trading is simply the disparity between a currency pair’s ask (to buy) and bid (to sell) values.

 

👉 When Kenyan traders begin trading Forex, they will become familiar with the word “Spread.” A currency pair is always used to offer the bid and ask prices. An example of a “bid-ask spread” would be if you were selling the base currency and your bid price was lower than your offer.

 

👉 A currency pair consists of two different currencies: the “base currency” and the “quote” or “counter currency.” Using the currency pairing, you could calculate how much of the variable currency is equal to one unit of the base currency.

 

👉 The underlying market price will always be in the centre, with buying always being more costly than selling. In addition, a security’s price uniquely reflects the market’s estimated value at any given time.

 

👉 Kenyans must consider the two main market players, the price taker or retail trader and the market maker, broker, or overall counterparty, to understand why there is a “bid” and a “ask.”

 

👉 Market makers offer to sell assets at a fixed price (the ask price), and brokerages might employ many. Subsequently, they bid to buy securities at a given price (the bid price).

 

👉 Depending on whether they want to buy (ask price) or sell (bid price) the investment, an investor will accept one of these two prices when starting a transaction in forex trading.

 

👉 Outside of commissions, the spread is the primary trading expense. This is the difference between the asking price and the bidding price. The market maker collects the spread via the routine processing of orders at the bid and ask rates.

 

👉 Financial brokerages imply this when they claim their revenue is derived by “crossing the spread.” One interpretation of the bid-ask spread is as a gauge of the supply and demand for the asset.

 

👉 The price movement shows a change in supply and demand when the bid and ask prices diverge since the bid represents demand for a security and the ask represents supply.

 

👉 The depth of the “bid” and “ask” could impact the bid-ask spread. For example, the spread may increase significantly if fewer buyers place limit orders to buy an asset (generating fewer ask prices) or if fewer sellers place limit orders to sell an asset.

 

👉 Therefore, the bid-ask spread must be considered to ensure the execution of a buy limit order.

 

👉 Moreover, the difference between the best bid and best ask prices that market makers and seasoned traders are willing to provide at a given moment could also widen if they sense imminent market risk.

 

👉 The declared bid-ask spread will be greater than usual for a certain asset if every market maker follows this strategy. Some high-frequency traders and market makers try to earn money by taking advantage of changes in the bid-ask spread.

What drives Forex Spreads?

What drives Forex Spreads?

👉 In addition to the broker and whether they charge variable or fixed spreads, additional variables might increase or decrease a forex spread.

 

The time of day

👉 The time of day at which a transaction is conducted is crucial. Asian markets open late at night for US and European investors. However, European markets open in the early hours of the morning.

 

👉 For example, if a euro deal is executed during the Asia trading session, the currency spread will be significantly wider (and more expensive) than if it had been executed during the European trading period.

 

👉 Suppose it is not the currency’s typical trading session. In that case, there will be a shortage of buyers and sellers, leading to low liquidity. In addition, if the market is not liquid, it is difficult to buy and sell currencies since there are insufficient market players.

 

👉 Therefore, forex brokers increase their spreads to account for the risk of loss if they cannot exit their position.

 

Events and Overall Volatility in the Market

👉 Economic and geopolitical developments may also widen FX spreads. For example, if the US Unemployment rate turns out to be far higher than expected, the dollar would weaken or lose value versus most other currencies.

 

👉 When momentous events happen, the foreign exchange market may be very volatile and prone to sudden movements.

 

👉 Moreover, because of the significant volatility of currency prices, forex spreads may be exceptionally large during major events (called extreme volatility).

 

👉 During periods of event-driven volatility, it might be difficult for a forex broker to pinpoint the true exchange rate, prompting them to charge a greater spread to compensate for the increased risk of loss.

How Pips Affect Forex Trading

How Pips Affect Forex Trading

👉 The last digit represents the spread after the decimal point in a price quote for a currency pair, and each pip represents one basis point of movement in the price (equal to 0.0001).

 

👉 Except for the Japanese yen, where the pip symbolizes the second decimal place, this is true for all pairs of currencies.

 

👉 The wider the spread, the greater the disparity between the two prices, which can suggest little liquidity and excessive volatility.

 

👉 However, a smaller gap is indicative of low volatility and abundant liquidity. Subsequently, the spread cost will be reduced when trading a currency pair with a tighter spread.

 

👉 When dealing in foreign exchange, spreads may be either variable or fixed. Due to the floating nature of the spread, it moves in tandem with the bid and ask prices of the paired currencies.

How Leverage Affects the Pip Value

How Leverage Affects the Pip Value

👉 A standard Forex account comes with fixed lot sizes and pip increments. In currency trading, a pip is the smallest possible change in value.

 

👉 Most currency pairs use a pip unit of $0.0001 for each lot priced at $100,000 since this is the norm for currency pairs involving the US dollar.

 

👉 The worth of a pip is measured by how much it would alter a dollar sum. No of the leverage ratio, the value of a pip remains the same. Instead, your leverage determines how much of a change in price each pip makes.

 

👉 In Kenya, traders may often take advantage of a leverage ratio of up to 1:100, meaning they need only deposit $1,000 for every $100,000 in trades.

 

👉 Additionally, the value of one pip is equivalent to one penny when dealing in US dollars, and 10,000 pips are equal to one dollar. Because the yen’s value is so low that it is not worth a thousandth of a unit, each pip is worth 1 percent of a yen in Japan.

 

👉 Kenyans risk losing everything if they trade Forex with an elevated level of leverage. For example, if a pip is worth $150, then 67 pips could wipe out your whole $1.5 million trading account. Therefore, spending the whole $1.5 million is a very risky proposition.

 

👉 In the foreign exchange market, transactions are often measured in pips. Then, you could perform the math to determine whether you made a profit.

 

👉 Multiplying the spread between a transaction’s open and close prices by the number of currency units involved yields the total number of pip spreads. Forex pips are denoted in US dollars. If the US dollar is the base currency, then the pip value should be converted to USD.

Fixed versus Floating/Variable Spreads

Fixed versus Floating/Variable Spreads

👉 Kenyan forex traders should expect to see two kinds of spreads from various forex brokers, the fixed spread, and the floating spread.

 

Fixed Spreads

👉 As the name implies, a fixed spread does not change over time or in reaction to general market volatility and fluctuations. However, in times of excessive volatility and limited liquidity, the spread may be temporarily adjusted by shifting to a new fixed spread level.

 

👉 However, the spread goes back to normal as market circumstances stabilize. Despite these few instances, Kenyans find trading with a predetermined spread less risky and more convenient.

 

👉 Brokerage companies have, in recent years, worked hard to compete in a highly competitive market by offering customers novel options like spread. As a result, there has been an uptick in companies making use of the floating spread.

 

Floating/Variable Spreads

👉 A floating spread is a difference between the Ask and Bid prices that constantly changes in the Forex and CFD markets. Floating spread is often associated with interbank connections and is a market phenomenon.

 

👉 Consequently, several brokers provide Kenyans access to ECN accounts alongside the more traditional trading accounts with a floating spread (Electronic Communication Network).

 

👉 By putting buy and sell orders into the system, participants, including banks, market makers, and private investors, can trade with one another using the services an ECN Forex broker provides.

 

👉 Although consumers trading on the ECN platform benefits from tighter spreads, they must pay a commission to their broker for each trade.

 

👉 The advantages and disadvantages of Fixed Spread vs. Variable spreads can be viewed side-by-side as follows:

📈 Fixed Spreads📊 Variable Spreads
Traders in Kenya using a fixed spread broker may face requotesThere is no requote risk for traders
Traders may make better cost, profit, and loss estimatesReduced and negative spreads are on the horizon for Kenyans
Compared to other types of accounts, trading ones demand less money to openTrue market liquidity is shown in spreads that fluctuate
Beginners should use fixed spreads. Commerce in KenyaVariable spreads are the preferred trading method of seasoned professionals
The spread is unaffected by the current market circumstancesTraders can lose money in a winning position due to slippage caused by changing spreads in times of high market volatility
Whenever brokers have difficulty maintaining a constant spread, traders may experience slippageIt may take some time to figure out varying spreads
Traders with a limited time horizon, such as scalpers, benefit most from fixed spreads

Typical Spreads While Kenyans trade Forex

👉 Because of the nature of currency trading, different pip values apply to different currencies. Although most interfaces only support whole pips, it is possible to record price changes in half-pip increments on certain trading platforms.

 

👉 Depending on the platform and price feed, some systems may display four or five pips (pipettes).

 

👉 When exchanging currencies, investors and traders often deal in the Japanese yen (JPY), British pounds (GBP), United States dollars (USD), Euros (EUR), and Canadian dollars (CAD). In addition, you may mix and match these basic currencies with lesser-known ones.

 

👉 Kenyans who dabble in the foreign exchange market would do well to keep an eye on the day’s average ranges in currency trading. If the actual pairings are outside the expected ranges, you will not make as much money as you had hoped and will need to set new, more realistic objectives.

 

👉 The following spreads may be predicted from three of the most notable financial centers in the forex market, based on the most frequently traded major currency pairs:

📊 Currency Pair📍 New York📍 London📍 Tokyo
EUR/USD92 pips114 pips76 pips
GBP/USD99 pips127 pips92 pips
USD/JPY59 pips66 pips51 pips
AUD/USD81 pips83 pips77 pips
NZD/USD70 pips72 pips62 pips
USD/CHF93 pips102 pips67 pips
EUR/JPY107 pips129 pips102 pips

Low Spread Strategies and Trading Tips for Kenyans

Low Spread Strategies and Trading Tips for Kenyans

👉 Tips and Strategies for a Narrower Margin of Error in Kenya

 

👉 Therefore, traders should remember that the spread is the primary cost of trading forex and that if the gap expands, the cost of trading will increase.

 

👉 When trading foreign exchange, using leverage on risky or illiquid currency pairs may quickly be the kiss of death for a trader’s career. However, Kenyans must consider that the spread cost rises as a percentage of your account equity, so utilize as little leverage as feasible.

 

👉 Beginner traders should avoid trading environments with variable spreads and large leverage ratios. For example, if you have a small trading account and maintain a large stake, the spread might expand and force you to raise your margin or even close the transaction.

 

👉 Learn the ropes of spread trading by adhering to these three guidelines:

➡️ Trade only at optimal times of the day.

➡️ Prioritize trading currency pairings with high liquidity.

➡️ Keep abreast of developments that might alter your spreads.

 

Trade only at optimal times of the day

👉 It is smart to factor in the time of day, which may impact Forex spreads. For example, foreign exchange spreads tend to be tightest during major market hours in London, New York, Sydney, and Tokyo.

 

👉 Traders in Kenya are advised to take advantage of the tighter spreads during these periods. In addition, the sessions in London and New York coincide between 8 am and 11 pm EST.

 

Prioritize trading currency pairings with high liquidity

👉 One of the newcomers’ most prevalent spread trading strategies is focusing on highly liquid currency pairs. The gap between two currencies is less when trading volumes are larger for that pair. Therefore, for novice Kenyan traders, the key currency pairings, such as:

 

👉 The spreads between these pairs of currencies are often minimal. In contrast, the following currency pairings do not trade at tight spreads. They are overly sensitive to market volatility, liquidity, and news. The list of examples is not exhaustive but does contain the following:

➡️ EUR/USD

➡️ USD/JPY

➡️ USD/CHF

 

👉 Any Kenyan who wishes to trade these currency pairings should do so using the smallest possible leverage ratios if any:

➡️ USD/ZAR

➡️ USD/RUB

➡️ USD/ZAR

 

Keep abreast of developments that might alter your spreads

👉 To avoid the prohibitive costs of a widening spread, traders should keep in mind the following factors:

➡️ Spreads may widen due to market volatility caused by economic data releases or breaking news events. Spreads often widen when there is insufficient market liquidity. Volatility and liquidity are interdependent.

➡️ Spreads on currency pairs with large degrees of illiquidity, such as those of currencies from emerging markets, are typical. Insufficiency of market liquidity may also contribute to volatility.

➡️ Publicity and the news: Before a major news event, such as the release of the NFP jobs report, liquidity providers could widen their spreads. 

 

👉 Traders must exercise patience and discipline to only trade once the spreads narrow since the spread often reverts to its mean within a few minutes.

The Best Crypto CFD Brokers in Kenya

👉 In this article we have listed the best Forex Platforms in Kenya that offer trading platforms in Kenya. We have further identified some forex brokers that offer additional services and solutions to Kenyan traders.

 

Best MetaTrader 4 / MT4 trading platform broker in Kenya

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

Yes

Total Pairs

107

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, Exness is the best MetaTrader 4 / MT4 trading platform in Kenya. Exness has offices in Cyprus, the United Kingdom, Seychelles, South Africa, the British Virgin Islands, and Curaçao.

 

👉 Exness provides a number of benefits such as low commissions, instantaneous order execution, and the opportunity to withdraw money immediately via various instant withdrawal alternatives.

 

Best MetaTrader 5 / MT5 Forex Platform broker in Kenya

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

ASIC, FSA

Trading Desk

MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central

Crypto

Yes

Total Pairs

55+

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, HF Markets is the best MetaTrader 5 / MT5 trading platform in Kenya. HF Markets was previously known as HotForex. It offers a variety of pricing alternatives and account types. HF Markets has competitive fees and spreads that average 0.1 for the EUR/USD currency pair.

 

Best Forex platform for beginners in Kenya

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

CySEC, FCA, FSA, FSCA, Labuan FSA

Trading Desk

Meta Trader 4

Crypto

Yes

Total Pairs

62

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, Tickmill is the best trading platform for beginners in Kenya. Tickmill is reputable and trustworthy forex and CFD broker. Tickmill is regulated by top-tier regulators like FSCA (South Africa), FCA (UK), and CySEC.

 

👉 Tickmill offers instant internet banking deposit methods and quick bank transfer withdrawals.

 

Best Minimum Deposit Forex platform in Kenya

Overall Rating

Min Deposit

USD 1 / 116 KES

Regulators

IFSC, FSCA (South africa), ASIC, CySEC

Trading Desk

MetaTrader 4, MetaTrader 5, FBS Trader – all in one mobile trading platform.

Crypto

Yes

Total Pairs

Islamic Account

No

Trading Fees

Low

$140 (16 373 KESFind out More)

Account Activation Time

24 Hours

👉 Overall, FBS is the best trading platform for the lowest minimum deposit in Kenya. FBS is in operation since 2009 and has evolved to become a large, reputable international forex and CFD broker. FBS offers competitive trading conditions, a range of accounts, advanced trading tools, and several other advantages to Kenyan traders.

 

Best ECN Forex platform in Kenya

Overall Rating

Min Deposit

USD 0 / 0 KES

Regulators

ASIC, BVI, CFTC, FCA, FFAJ, FSC, IIROC, MAS, NFA

Trading Desk

Metatrader 4 and Metatrader 5

Crypto

Yes

Total Pairs

45

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, Oanda is the best ECN platform in Kenya. Oanda gives customers access to a variety of financial products for seasoned investors.

 

👉 Oanda offers quick and reliable transaction execution. Oanda’s research resources are superior to industry standards. Its user interfaces are easy to understand and it has a good track record of regulatory oversight.

 

Best Islamic / Swap-Free Forex platform in Kenya

Overall Rating

Min Deposit

USD 100 / 11660 KES

Regulators

CySec, FSC, FSA, BaFin, NFA

Trading Desk

MetaTrader 4 , MetaTrader 5

Crypto

Yes

Total Pairs

50 Forex Pairs and 20 Crypto Pairs

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, BD Swiss is the best Islamic Forex Broker in Kenya. BD Swiss is a well-regulated and reputable broker with a large international clientele. BD Swiss offers a wide range of products for trading. BD Swiss also offers trading in many cryptocurrencies.

 

Best trading platform Forex Trading App in Kenya

Overall Rating

Min Deposit

USD 5 / 578 KES

Regulators

FCA UK

Trading Desk

None

Crypto

Yes

Total Pairs

28

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, OctaFX has the best forex trading app for traders in Kenya. OctaFX operates from Saint Vincent and the Grenadines. OctaFX serves traders from all over the world, including those in African countries like Kenya.

 

👉 Kenyan traders can trade forex currency pairs, Index CFDs, commodities, and cryptocurrencies with OctaFX’s award-winning services from investors around the world.

 

Best Lowest Spread Forex platform in Kenya

Overall Rating

Min Deposit

570 KES or an equivalent to $5

Regulators

FSC

Trading Desk

MetaTrader 4

Crypto

Yes

Total Pairs

48

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, Alpari is the best Low spread Forex platform in Kenya. Alpari is trustworthy and reliable as a market maker broker. Alpari is regarded as a broker with a low level of risk. Trading speeds are guaranteed to be swift. More than 2 million customers are enrolled with Alpari.

 

Best Nasdaq 100 Forex platform in Kenya

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

CySec, FSCA 

Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

Yes

Total Pairs

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, FXTM is the best Nasdaq 100 forex platform in Kenya. FXTM aims to provide the best trading conditions for traders of all levels. For the safety and security of their clients’ cash, they keep such funds in segregated accounts.

 

👉 The broker is ideal for active trading and investment opportunities for traders of all skill levels.

 

Best Volatility 75 / VIX 75 Forex platform in Kenya

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

ASIC, FSA

Trading Desk

MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central

Crypto

Yes

Total Pairs

55+

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, AvaTrade is the best Volatility 75 / VIX 75 Forex Platform in Kenya. AvaTrade is trustworthy and well regulated. AvaTrade offers a single live trading account but traders have the choice to trade with either a Retail trading account or a Professional trading account.

 

Best NDD Forex platform in Kenya

Overall Rating

Min Deposit

USD 5 / 584 KES

Regulators

IFSC, CySec, ASIC

Trading Desk

Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform

Crypto

No

Total Pairs

57

Islamic Account

Yes

Trading Fees

No (Just spread) 

Account Activation Time

24 Hours

👉 Overall, XM is the best NDD forex platform in Kenya. XM is regulated by strict financial regulators in all relevant jurisdictions. XM offers a balanced mix of all the features that users value: security, support, ease of account funding, and withdrawal. XM charges low fees.

 

Best STP Forex platform in Kenya

Overall Rating

Min Deposit

USD 10 / 1156 KES

Regulators

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

Trading Desk

MetaTrader 4, MetaTrader 5, cTrader and TradingView

Crypto

No

Total Pairs

60+

Islamic Account

No

Trading Fees

Low

Account Activation Time

24 Hours

Trading margined products carries a high level of risk. Pepperstone Markets Kenya Limited, CMA Licence No. 128

👉 Overall, Pepperstone is the best STP Forex platform in Kenya. Pepperstone gives traders across the world access to all markets backed up by very good customer care. Pepperstone also offers modern technology, low spreads, and high-speed execution.

 

Best sign up bonus trading platform in Kenya

Overall Rating

Min Deposit

USD 100 / 11560 KES

Regulators

ASIC, CySEC

Trading Desk

MetaTrader 4, MetaTrader 5

Crypto

Yes

Total Pairs

63

Islamic Account

Yes

Trading Fees

Low

Account Activation Time

24 Hours

👉 Overall, FP Markets is the best Sign Up bonus trading platform in Kenya. FP Markets offers stocks, indices, foreign exchange (forex), commodities, and cryptocurrencies to trade. FP Markets has a user-friendly mobile app and a variety of account types to choose from.

Conclusion

👉 Pips are a component of the market quotation for a currency pair’s exchange rate. Pips indicate the variation in the price and value of a position you may have placed on the market.

 

👉 Kenyans must ensure they comprehend what Pips are, how they operate, and their significance in forex trading overall.

FAQ

How much is a pip worth in forex trading?

Except for the Japanese Yen (JPY), most foreign exchange pairings use a 4-decimal-place (0.0001) fluctuation as a “pip.” Subsequently, this is 1/100 or 1%.

 

How can Kenyans calculate the pip in Forex?

If Kenyans want to calculate the pip value of a trade, they can divide one pip (0.0001) by the current market value of the forex pair. Next, they can multiply this by their lot or position size, the number of base currency units traded.

 

Which currency pair has the highest pip value?

EUR/USD and GBP/USD have the best ratios as they are traded the most in the forex market and, thus, the most popular.

 

How can Kenyans calculate pips?

The value of a pip is 1/100 divided by the exchange rate. For Example, USD/KES is quoted as 120.59, and 1 pip would be 1/100 divided by 120.50, which is 0.0000829. With a standard lot position size of 100,000 USD, the value of a single pip is $8.29.

 

How much is a lot in Forex?

A standard lot in Forex is equal to 100,000 currency units.

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