make or lose money in a forex trade

The forex markets trade in pips. A pip is 1/100th of 1% or $10. Like all
financial products, forex quotes include a “bid/ask” spread. The “bid” is the price
at which the market maker is willing to buy (and you can sell) the base currency
in exchange for the counter currency. The “ask” is the price at which the market
maker is willing to sell (and you can buy) the base currency in exchange for the
counter currency. The difference between the “bid/ask” spread is how the market maker and the broker are compensated for their services. For instance, if
you bought 1 EUR/USD at 1.3000 and the “bid/ask” pip spread is 3 pips. That
means that you will not be at break even until the spread goes to 1.3003. At
1.3004 you will have a profit of $10. If you sell for anything less than 1.3003 you
will lose $10 per pip.