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Old 11-27-2007, 07:39 PM
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Usdjpy

Hello. I've been looking at this USDJPY trade and it seemed to me the 8EMA would be a good place to go short, which is also around the last lower low. But I'm new to Forex so I didn't know how to play it. So I think I have to let this trade go. But just wondering for the future how much leverage I should get and where to place my stop, and to do this I need to know how much each pip is worth, which I'm having trouble figuring out.

So let's say I go short at 108.585. Would one pip higher be 108.586? If so, how do I calculate how much that pip is worth? And thus be able to figure out if I'm risking no more than 1K, how much leverage is too much, causing too tight of a stop, and also to know where to place my stop so it doesn't risk more than 1K. Thanks.

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