Forex Education

Trading industry knowledge. Learn forex trading, investing in stocks, commodities.

Home » Education » Finance education

How Many Pips Does US30 Move Daily?

by

The US30 (also known as the Dow Jones Industrial Average) is one of the world’s most famous stock market indices. It is a price-weighted average of 30 significant stocks listed on the New York Stock Exchange and NASDAQ, with each stock carrying a proportional weighting in the index. The US30 was first calculated by Charles Dow, who combined 12 stocks in 1884 to form what would later become the Dow Jones Industrial Average – an essential measure of American economic performance.

Over time, the number of stocks included in the index has changed to reflect changing markets and industry trends. Today, companies such as Apple Inc., Microsoft Corporation, and JPMorgan Chase & Co. are all represented on this important index. Despite its reputation as a reliable benchmark for evaluating economic health, volatility remains a crucial factor when investing in or following the US30.

Volatility can be defined as the rate at which an asset’s price changes over time, either increasing or decreasing, with fluctuations in market prices and expectations. Volatility measures how fast returns can change daily or during various trading periods. Since its inception, there has been significant volatility associated with the US30 – sometimes rising dramatically before dropping sharply again within days or weeks; other times seeing steady climbs up until dramatic losses occur suddenly due to external events such as recessions or wars. In 2008, for example, during one of the worst global financial crises in history, US30 lost more than half its value between late October 2007 and March 2009 – indicating extreme volatility during those months.

 

Please see how you can calculate volatility on the Dow (US30) index:

From how to calculate pips on us30 dow

From this example, we see that:

US30 (DOW): 33333.80 to 33333.90 is one pip move

 

How Many Pips Does US30 Move Daily?

On average, US30 or DOW industrial moves daily 5640 pips (564 points) based on research for 2022. The lowest yearly low was 28660.94, while the highest high was 35824.28, representing a difference of 71633 pips.

For example, yesterday’s high was 33381.95  while the low was 32948.93, representing daily volatility of 4330 pips.

Let us research more about the US30 index.

dow us30 volatility per day in the week

The most volatile day for the DOW US30 index is Friday (on average, age 645 points or 6450 pips or 2%). The least volatile day for US30 is Monday which is 507 points or 5070 pips by average or 1.6%) On the end, let us see DOW volatility by hours :

dow volatility by hour

Here we can see tent when the US market opens, its most significant volatility in trading for US30 (DOWh is often four times bigger than during the Asian session.

 

 

How to Calculate Pips on Bitcoin? – Count Pips on BTCUSD!

by

Bitcoin is a decentralized form of digital currency, also known as cryptocurrency. It was created in 2009 by an anonymous individual or group of individuals under the pseudonym Satoshi Nakamoto. The purpose behind its creation was to provide people with an alternative source of money that isn’t subject to traditional financial rules and regulations.

Unlike traditional currencies, Bitcoin cannot be printed or created through government intervention. The only way to acquire it is through mining, which involves complex algorithms and expensive computer equipment. Bitcoin transactions take place peer-to-peer over the internet, eliminating the need for third-party involvement in financial transactions, such as banks and other financial institutions.

For traders, one of the most convenient platforms for trading BTCUSD (Bitcoin vs. US Dollar) is MetaTrader 4 (MT4). This popular platform offers .advanced charting tools, automated trading signals, and access to hundreds of technical indicators that can help traders make more informed decisions when trading BTCUSD pairs.

When getting set up on MT4, traders must first open an account with a broker that supports BTCUSD pair trading on MT4. Once their account is active, they will have to download the MT4 platform onto their computer or mobile device; this should take no more than fifteen minutes. After logging into their MT4 account, they can access the full range of features by MetaTrader 4, including charting tools, live market data feeds and automated trading signals explicitly tailored for the BTCUSD pair.

To execute trades with explicitly tailored needs to log into their account via the desktop platform or mobile device app, select “New Order” from the menu bar at the top of their screen, then enter all relevant details before submitting a buy or sell order on any currency pair broker’s list of tradable instruments including BTC/USD.

Traders should keep in mind that due to the Volatility associated with crypto markets such as the bitcoin/US dollar, there are higher risks associated with other asset classes; always make sure you understand how high leverage affects your ability to manage risk before entering positions within these markets. As with any online investment activity, please ensure you do all necessary regarding regulator,y requirements given your geographical location before opening an account with any online broker offering bitcoin/US dollar trading activities.

How to Calculate Pips on Bitcoin?

To calculate the BTCUSD number of pips, remember that one pip size of BTCUSD is $0.01. So the bitcoin price gain from 21000.94 to 21000.95 is one pip difference on BTCUSD (bitcoin).

If you want to learn how to count pips for various assets, visit our article. For example, on our website, you can learn how to calculate pips on gold or how to count pips on silver.

So how to calculate bitcoin pips:

The one pip value of bitcoin (BTC/USD) per  1 lot is 0.01 USD.

Next, the one pip value of bitcoin (BTC/USD) per  1 mini lot is 0.001 USD.

Finally, the one pip value of bitcoin (BTC/USD) per  1 micro lot is 0.0001 USD.

 

  • If we trade one lot in MT4 and the bitcoin price rises from 27000.00 to 27001.00, that means 100 pips gain or $1.
  • If we trade one mini lot in MT4 and the bitcoin price rises from 27000.00 to 27001.00, that means 100 pips gain or $0.1.
  • If we trade one micro lot in MT4 and the bitcoin price rises from 27000.00 to 27001.00, that means 100 pips gain or $0.01.

 

Now I will make one test to show you how to count pips on BTCUSD. I will create three orders with three different position sizes. One trade will be one micro lot size order, one position lot size, and finally last trade one lot size.

Please see the image below:

 

bitcoin calculate pips

Now I will present the calculation on the next slide:

how to calculate bitcoin pips

Now let us calculate pips and dollars for each order:

  • One micro lot: 21296.57-21348.58= -520 pips. So if the price decline 520 pips for lot size one micro lot loss is -$0.52
  • One mini lot: 21296.57-21344.98= -484 pips – So if the price fall 484 pips for lot size, one mini lot loss is -$4.84
  • One lot: 21296.57-21346.53 = -499.6 pips – So if the price decline 499.6 pips and your lot size one lot loss is -$49.96

How to Calculate US30 Pips? – Count Pips on DOW

by

The Dow Jones Industrial Average, also known as the US30 or simply the Dow, is a stock exchange index made up of 30 large companies listed on the New York Stock Exchange (NYSE). The Dow index was created by Charles Henry Dow in 1896 one of the oldest stock market indices.

The Dow index measures the performance of these 30 blue-chip stocks chosen to represent the broader U.S. economy. It reflects how well these 30 large companies are financially and is considered an influential gauge of overall market sentiment. The components included in the index are calculated using a price-weighted average, meaning that stocks with higher prices will have more influence over the average than those with lower prices.

The current list of components for the Dow includes some of the largest companies in America, such as Apple, Microsoft, JPMorgan Chase, Walmart, and Home Depot. The index is reviewed quarterly by a committee at S&P Global, which may change its composition if necessary. As such, it can act as a barometer for gauging how well corporations within the U.S. economy perform compared to other markets. It can also give investors an idea of where they should allocate their resources accordingly.

In terms of historical performance, the average has experienced quite a few long stretches where it went up over time yet experienced various drops during inevitable recessions or crises, such as those seen in 1987 or 2008, respectively. Despite these occasional drops, overall trends have been positive since its creation, and it has grown significantly since then despite recent instability due to global events such as Brexit or elections taking place around the world.

Interestingly enough, reports suggest that only 17% of Americans own any stocks at all, which means that this index holds even greater importance for those who do invest because it can give them an idea about what direction they should take when deciding whether or not to buy or sell something on an individual basis instead of relying on macroeconomic analysis alone.

This article will teach us how to count pips on US30 (DOW).

If you want to learn how to count pips for various assets, visit our article. For example, on our website, you can learn how to calculate pips on gold or how to count pips on silver.

How to Calculate US30 Pips?

To count pips on US30, you must remember that a 0.1 difference in price is one pip. The US30 price gain from 33000.00 to 33000.10 is one pip difference on USD30.  If you add 25 pips on 33000.00 US30 prices, you will get 33002.5.

  • If we trade one lot size of US30 in MT4, one pip is $0.1.
  • If we trade one mini lot size of US30 in MT4, one pip is $0.01.
  • If we trade one micro lot size of US30 in MT4, one pip is $0.001.

For example, if we trade one lot size and the price goes from 33500.00 till 33575.00, 250 pips gain or $25 in the MT4 platform.

I will create one live trading example where I will open three trades, one micro lot size, mini lot size, and one lot size. See the image below:

US30 trading in MT4

Now, I will show you how to calculate pips in the MT4 platform in this practical case:

how to calculate pips on us30 dow

Let us calculate pips and dollars for each trading size:

  • One micro lot: 33127.75-333143.15= -154 pips. So if the price declines 154 pips for lot size one micro lot loss is -$0.15
  • One mini lot: 33127.75-33151.15= -234 pips – So if the price fall 234 pips for lot size, one mini lot loss is -$2.34
  • One lot: 33127.75-33150.15 = 224 pips – So if the price decline 224 pips and your lot size one lot loss is -$22.4

Please, remember that some brokers can change lot size/pips in dollars. Based on that, always try to test the platform using a demo account.

How to Calculate Pips in NASDAQ? – Count Pips on NAS100

by

NASDAQ, or the NASDAQ 100 Index or NAS100, is a stock index comprised of the largest and most prominent non-financial stocks listed on the Nasdaq Stock Exchange. The index was created in 1985 and is designed to track the performance of America’s leading technology companies.

The NASDAQ 100 comprises the top 100 companies listed by market capitalization. Companies eligible for inclusion must be headquartered in the United States or Canada, have their primary listing on the exchange, and meet specific liquidity criteria. The list includes household names like Apple, Microsoft, Amazon, and Facebook.

The index is considered a bellwether for technology stocks as it tracks all publicly traded U.S.-based companies that deal in computing and networking technology, semiconductors, retailing/e-commerce software development, biotechnology, and other related industries. As such, it indicates how well these industries are doing, given that they are often intertwined with each other’s fortunes.

The NASDAQ 100 remains one of the world’s most closely watched indices due to its broad coverage of tech stocks across different sectors. It has become increasingly popular with investors who want to gain exposure to America’s tech sector without having to pick individual stocks themselves. Investors can access the index through derivatives such as futures contracts or exchange-traded funds (ETFs).

Below I will show you one example in MT4 where I opened three different orders. One order is one micro lot position, the second is one mini lot, and the last is one lot trading size position.

nas100 trading in MT4

If you want to learn how to count pips for various assets, visit our article. For example, on our website, you can learn how to calculate pips on gold or how to count pips on silver.

How to count pips on NAS100 (NASDAQ)?

To calculate the number of pips on NAS100 or NASDAQ, you need to know that a 0.1 difference in price is one pip in the Metatrader platform at most CFD brokers. The NAS100 price gain from 11800.00 to 11800.10 is one pip difference on NAS100. If you add 20 pips on 11800.00 NAS100 prices, you will get 11802.00.

  • If we trade one lot size of NAS100 in MT4, one pip is $0.1.
  • If we trade one mini lot size of NAS100 in MT4, one pip is $0.01.
  • If we trade one micro lot size of NAS100 in MT4, one pip is $0.001.

For example, if we trade one lot size and the NAS100 price goes from 11800.00 to 11876.00, 760 pips gain or $76 in the MT4 platform.

But I will show you an example from live trading with screenshots from the MT4 platform.

How to Calculate Pips in NASDAQ in MT4 Live Trading Example:

how to calculate nas100 pips

Based on the screenshot example NAS100 we can learn how much nas100 is per pip in the following example:

  • One micro lot: 11477.65 – 11472.75 = 50 pips. So if the price rises 50 pips and your lot size is one micro lot, it is $0.05
  • One mini lot: 11477.65-11470.62= 70 pips – So if the price rise 70 pips and your lot size is one mini lot, it is $0.7
  • One lot: 11477.65-11470.5 = 71 pips – So if the price rise 71 pips and your lot size is one lot it is $7.1

One important thing:

Remember that some brokers can change one lot size power and change the formula to calculate the number of gains or losses in dollars based on pips.

So, my advice is always to try to open a few trades on a demo account to see how your broker calculates pips on NAS100 and other indices and then start live trading.

What is Pro Forma EBITDA?

by

A company’s financial health and ability to generate cash are two critical measures of success. The ability of a company to create some money reflects the strength of its operations, capital structure, and strategy. Investors and creditors can assess the business’s current and future economic performance by analyzing these factors. Financial health is an umbrella term encompassing several indicators such as liquidity, profitability, solvency, and debt levels. Understanding each measure to assess a company’s financial health is essential.

Liquidity measures how quickly a company can convert assets into cash to service its short-term obligations. A company’s current ratio indicates how much working capital it has by comparing its existing assets with its current liabilities. Companies should strive for a current balance more significant than 1; if it is less than 1, this indicates that the company does not have enough liquid assets to pay off its debts.

Profitability measures a company’s ability to generate profits on sales or other activities over time. Companies should track their return on investment (ROI) which represents the profit generated from operating activities divided by total invested capital. Additionally, they should analyze gross margin, which provides insight into a business’s pricing strategy by measuring the proportion of revenue left after accounting for costs associated with goods sold.

Solvency measures how much debt a company holds relative to its total assets often expressed as a total debt-to-total assets ratio or debt-to-equity ratio. Suppose this ratio exceeds certain thresholds set by creditors and regulators. In that case, it could indicate that the firm may be at risk of defaulting on loans or meeting loan covenants if economic conditions deteriorate further.

EBITDA PRO FORMA

Debt levels indicate how much leverage – i.e., borrowed money – has been used to finance operations and growth initiatives within the firm’s capital structure. Companies should manage their debt responsibly because too much leverage can increase both interest expenses and bankruptcy risks in difficult economic times when cash flows shrink significantly due to decreased sales or prices charged for goods or services the business entity offers.

 

What is Pro Forma EBITDA?

Pro forma is a Latin term that means “for the sake of form” or “as a matter of form.”. Pro forma in business are documents that satisfy minimum requirements. Pro Forma EBITDA is an expected financial statement that includes specific catalysts and events for a particular period. It is used to sell or buy a Pro Forma business. It is usually used to calculate earnings before interest, taxes, depreciation, amortization, EBITDA, or revenue for 12 months. The entry of a fresh market or a fresh product during that period is the catalyst for the buyers to calculate the Pro Forma EBITDA TTM and assume the possible EBITDA during the 12 months when a new product was launched.

Pro forma EBITDA is a financial measure used in business and investing in assessing profitability. It stands for earnings before interest, taxes, depreciation, and amortization. The term is derived from the Latin phrase pro forma, which means “for form” or “as a matter of form.” This measurement shows prospective investors how much money they can expect to make from their investments.

EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization. This measurement helps investors understand how profitable a company is without considering non-cash expenses such as depreciation or amortization. Pro forma EBITDA takes EBITDA one step further by adding other income or fees that may not be considered when calculating traditional EBITDA figures. These additional items may include non-recurring revenue streams, one-time costs associated with particular transactions, or unique tax treatments related to specific transactions that have occurred in prior years.

Pro forma EBITDA provides a more comprehensive view of a company’s underlying performance than measures like net income or operating income because it does not consider the impact of financing activities such as interest payments on debt financing or taxes paid on profits from operations. Furthermore, it also eliminates non-cash charges such as depreciation and amortization, which are typically included on an income statement but do not affect cash flows in any way.

Pro forma EBITDA, therefore, gives investors a better indication of how much cash flow they can expect to receive from their investments over time.

When analyzing potential investments, analysts will typically compare the Pro Forma EBITDA of different companies within the same industry to evaluate relative strength among competitors and identify opportunities for improvement within individual companies.

EBITDA Pro Forma Example

For example, suppose Company A has a higher Pro Forma EBITDA than Company B within the same sector.

This could indicate that Company A is more efficiently managed than Company B since it generates more profits despite having similar operating costs and capital expenditures. Analysts can also use pro forma EBITDA figures to estimate future earnings growth by adjusting them for various assumptions about future revenues and expenses, such as changes in tax rates, increases in sales volume due to new product launches, etc.

In addition to being used for investment analysis purposes, pro forma EBITDA figures can also be valuable for forecasting purposes insofar as they provide an accurate reflection of expected revenues and expenses based on current information rather than relying solely on past results (which are subject to change). This allows businesses to plan more accurately regarding near-term and long-term decisions such as expansion plans, capital investments, personnel hiring, etc. By accessing reliable pro forma EBITDA estimates, companies can better anticipate their future performance before making costly investments that might not pay off in the end.

What are Pro forma statements?

Proforma or proforma statements are financial reports for your business based on hypothetical scenarios.

What is the Pro forma income statement?

A Pro forma income statement or proforma income statement is just an income statement under certain assumptions with projections.

What is another name for pro forma earnings?

Another name for pro format earning is earnings before income taxes, depreciation, and amortization (EBITDA).

The buyers usually calculate the free cash flow and the EBITDA rate or earnings before interest, taxes, depreciation, and amortization while assessing the worth of the business available for sale. For this purpose, buyers usually use the projected Pro forma of a growing business to normalize infrequent EBITDA or assess the effect of the changes that occurred during that period.

For instance, if $5.0 million is the TTM EBITDA target of a company, it introduced a fresh product nearly four months ago, increasing its EBITDA by $200,000 every month. However, due to monthly expenses of $25,000, the company has closed its unit at that location after six months. Then the pro forma TTM EBITDA will be calculated by the buyer at $6.75. This way, the company’s pro forma EBITDA for sale will include $1.6 million contributed by the new product to the previous eight months’ earnings. Thus, it helped the company save overheads up to $150,000 in six months before the office’s closure.


Benefits of analyzing Pro-Forma EBITDA

As discussed above, an investor can get a clear picture of its operations through the figures shown in its Pro forma EBITDA. In some cases, they can know more accurately about the nature of their business and financial performance with their pro forma earnings. Pro forma reports are used more in certain companies to show the characteristics of their industry. A significant amount of one-time charges are borne by a company when it undergoes a merger or a considerable restructuring. Such expenses can unfairly affect the company’s short-term profits as they are not considered ongoing costs. The investor can analyze its pro forma earnings more appropriately while evaluating its long-term potential by excluding the non-recurring expenses. Investment banks and corporate managers also prepare and use pro forma financial statements to assess their businesses’ future operating costs and evaluate their potential for targeted takeovers.

In this way, pro forma EBITDA is a valuable tool that can analyze the changes in a company’s operations and identify the drivers of its core value. In addition, the information provided by the pro forma earnings can help clarify things when a large amount of goodwill and asset depreciation is blurring the official salaries of a company.

Overall, assessing financial health requires careful analysis across all these metrics since each one paints only part of a larger picture about how well (or poorly) a business is performing financially at any given moment. This information helps creditors determine whether they will extend credit to companies based on their history and their prospects for generating sufficient income in the foreseeable future so that they can eventually repay those loans without struggling too much along the way during their repayment period(s).

Diversify your savings with a gold IRA.

Gold & silver portfolio-building assistance from product professionals.

VISIT GOLD IRA COMPANY If you want to trade stocks try: TRADE IDEAS

Spanish language

Spanish language website

Privacy Policy