Thinkorswim is a popular platform used by traders all around the world to trade stocks, options, futures, and forex. It offers a wide range of features and tools to help traders make informed decisions and execute trades with ease. One of the most important aspects of forex trading is the ability to see pip prices. In this article, we will explain how to see forex pip prices on Thinkorswim.
What are Pips?
Before we dive into how to see forex pip prices on Thinkorswim, it’s important to understand what pips are. Pip is short for “percentage in point” or “price interest point”. It’s the smallest unit of price movement in forex trading. Most currency pairs are quoted to four decimal places, except for the Japanese yen pairs which are quoted to two decimal places.
For example, if the EUR/USD pair moves from 1.1000 to 1.1001, that’s a one pip movement. Similarly, if the USD/JPY pair moves from 107.00 to 107.01, that’s also a one pip movement.
Why are Pips Important?
Pips are important because they determine the profit or loss on a trade. The value of a pip varies depending on the currency pair being traded and the size of the position. A pip is worth more in some currency pairs than others. For example, a one pip movement in the USD/JPY pair is worth less than a one pip movement in the EUR/USD pair.
How to See Forex Pip Prices on Thinkorswim
Now that we understand what pips are and why they are important, let’s take a look at how to see forex pip prices on Thinkorswim.
Step 1: Open a Forex Chart
To see forex pip prices on Thinkorswim, you first need to open a forex chart. To do this, go to the Charts tab on the platform and select Forex. Choose the currency pair you want to trade and select the time frame you want to analyze.
Step 2: Add a Study
Once you have a forex chart open, you need to add a study to see pip prices. To do this, click on the Studies button on the top-right corner of the platform and select Add Study/Strategy. In the search bar, type in “Price Labels” and select it from the list of studies.
Step 3: Adjust the Settings
Once you have added the Price Labels study, you need to adjust the settings to see pip prices. Right-click on the chart and select Studies > Price Labels. In the settings window, select “Pips” under the “Display Type” dropdown menu. You can also adjust the font size, color, and position of the labels.
Step 4: Analyze the Chart
Now that you have added the Price Labels study and adjusted the settings, you can analyze the chart and see the pip prices. The labels will appear on the chart, showing the price movement in pips.
Conclusion
Seeing forex pip prices is crucial for traders who want to make informed decisions and execute trades with precision. Thinkorswim offers a simple and effective way to see pip prices on forex charts. By following the steps outlined in this article, you can easily add the Price Labels study and adjust the settings to see pip prices on your charts. With this information at your fingertips, you’ll be able to analyze the market and make profitable trades.
