It is possible to generate consistent forex trading profits from online forex trading by trading the daily range of a currency pair.

But how do these movements in the exchange rates translate to the forex traders bottom line?

With trading a pair, like the EUR/USD, the U.S.-based trader will note that the pair has a fixed value of $10 per pip.

This is also true for all pairs that have USD as the second currency.

Hence, in any currency pair containing USD as the second currency, a favourable movement in the exchange rate of 10 pips will make a gain of $100 for you if you are conducting forex trading online. In the case of the EUR/USD pair, a gain or loss of 10 pips can happen easily since the pair moves about 100 pips each day on average.

Some currencies pairs – like the GBP/JPY – are even more volatile and provide a greater profit opportunities.