Thinkorswim is a popular trading platform that offers traders access to a wide range of financial markets, including forex. Forex trading can be complex, and one of the most important things to understand is how to read and interpret forex pip prices. In this article, we will discuss how to see forex pip prices on the Thinkorswim platform.
What is a pip?
Before we dive into how to see forex pip prices on Thinkorswim, it’s essential to understand what a pip is. A pip is a unit of measurement used in forex trading to represent the smallest possible price change in an exchange rate. In most currency pairs, a pip is equal to 0.0001 or 1/100th of a cent. However, in some currency pairs that include the Japanese yen, a pip is equal to 0.01 or 1 cent.
For example, let’s say the exchange rate for EUR/USD is 1.2000. If the exchange rate moves to 1.2001, it has increased by one pip. Similarly, if the exchange rate moves to 1.1999, it has decreased by one pip.
How to view forex pip prices on Thinkorswim
To view forex pip prices on Thinkorswim, you need to have a forex trading account with TD Ameritrade. Once you have logged into your account, follow these steps:
Step 1: Open a forex chart
To view forex pip prices, you will need to open a forex chart. To do this, click on the “Charts” tab at the top of the platform and select “forex” from the dropdown menu. Next, select the currency pair you want to view and choose the time frame you want to analyze.
Step 2: Add the pip grid
Once you have opened your forex chart, you will need to add the pip grid. The pip grid is a tool that overlays the price chart and displays the pip value for each price level. To add the pip grid, right-click on the chart and select “Studies.” Next, select “Add study” and choose “Grid” from the dropdown menu. Finally, select “Pip Grid” from the list of available grid types.
Step 3: Adjust the pip value
By default, the pip value on the grid is set to 0.0001, which is the standard pip value for most currency pairs. However, if you are trading a currency pair that includes the Japanese yen, you will need to adjust the pip value to 0.01. To do this, right-click on the chart and select “Studies.” Next, select “Edit studies” and choose “Pip Grid” from the list of available studies. Finally, change the pip value to 0.01 and click “OK.”
Step 4: Interpret the pip grid
Once you have added the pip grid and adjusted the pip value, you can interpret the pip grid to see forex pip prices. The pip grid will display a series of horizontal lines that represent different price levels. Each line will have a pip value displayed next to it. For example, if the EUR/USD exchange rate is 1.2000, the pip grid will display a horizontal line at 1.2000 with a pip value of 0.0001.
As the exchange rate moves up or down, the pip grid will adjust the horizontal lines accordingly, and the pip values will change. This allows you to see the pip price for each price level and helps you to identify key support and resistance levels.
Conclusion
In conclusion, understanding forex pip prices is crucial for any forex trader. Thinkorswim offers a range of tools to help traders view and interpret forex pip prices, including the pip grid. By following the steps outlined in this article, you can easily add the pip grid to your forex chart and begin analyzing forex pip prices. Remember that forex trading involves a high level of risk, and it’s essential to have a solid understanding of the markets and your trading strategy before placing any trades.
