
PIP is a measurement unit to reveal changes in values between two currencies. For example, if EUR / USD moves from 1.1050 to 1.1051, with the exchange rate of .0001 USD, then EUR / USD has a movement of 1 PIP. Pip is calculated based on changes to the last decimal number from a Quote price. Most brokers now provide quotes with 4 digit numbers, except for JPY (Yen) pairs. Especially for JPY, there are two decimal numbers.
However, now there are also many brokers who present forex pairs in the form of five decimals (three decimal places for JPY), for example EUR / USD 1.13354 or USD / JPY 100,015. Now, in such a quote, the last digit is not a Pips, but a Fractional Pips or Pipettes. To measure price movements, Fractional Pips cannot be counted as a whole Pip, but only a tenth of a Pip (1 Fractional Pip = 1/10 Pip). So for example if USD / JPY 100,058 drops to 100,014, then it means there is a decrease of 4.4 pips, not down 44 pips.
Noteworthy here, the actual value of how many dollars or how many rupiahs per pip can vary depending on what currency pair, trading size (lot), and exchange rate apply. Based on these three things, just one pip up and down can affect the amount of profit / loss in forex. Here's an example:
When trading buy USD / CAD as much as $ 200,000 (2 standard lots), then the trading position closes profit 20 pips at the price of 1.0568. To calculate how many dollars the value of the profit, can be calculated by the steps:
* Find the CAD value per pip by multiplying the lot by the pip value: 200,000 x 0.0001 = 20 CAD per pip.
* Find the value of USD per pip by dividing the CAD value per pip at the prevailing exchange rate at the closing price: 20 x 1.0568 = 21.14 USD per pip
* Multiply the value of USD per pip with the amount of profit in the pips earlier: 21.14 x 20 = Profit total $ 422.8.
However, you don't have to worry about manual calculations like this. Knowledge of Pips is needed when learning forex because this is an important basis, but in practice, today's forex brokers can do it automatically. In trading software that can be obtained from brokers, you will immediately be able to see when the trading position is closed, how many pips are earned and how many dollars your money increases. If you want to calculate just to make a trading plan or get illustrations of learning forex, then you can use a forex calculator or pips calculator that is widely available and easy to find in cyberspace.

It is a well known fact that every area of endeavour has its own terminologies of which forex trading is of no exemption. Profits in forex trading especially in dealing with currencies are expressed in terms of pips. Pip is the abbreviation of Profit in points or more expressively profit in percentage. This has to do with the capital (or lot size) that is used to place the trade at a point in time. 1 pip means 1 percent of the capital invested. In other words, when 100 usd is used then a movement of 1 pip is 1 usd. Invariably 100 pips will be another 100 usd whether in favour or against as it may be applicable at any point in time

Re: What is a pip in forex trading?
Originally Posted by
GhostMode
What is a pip in forex trading?
Suppose, EUR/USD is now at 1.1500 level. If you buy EUR/USD at this range then when it goes to 1.1501 then it will indicate that you got 1 pips profit. If it reach at 1.1550 then it will indicate that you got 50 pips profit. On the other hand, if EUR/USD moves to 1.1450 then it will indicate that your trade is now moving with 50 pips loss. If you are a newbie then you should count pips not dollar amount. You should tell people that today i manage to get 200 pips profit. You shouldn't tell that you manage $20 profit. Because you should learn first how to count profit on Forex market. Dollar will come to you automatically if you are able to trade properly. Spread of currency pairs are varies broker to broker. So, before counting pips you should learn how to count pips perfectly.
For the posts posted after 25.02.19 the likes will be displayed after 25.04.19.

Re: What is a pip in forex trading?
"PIP" is often called the "Price Index Point", some traders also calls it "Price in Point", it is a gauge to know the numbers of the movement of the market price over the period of time. We have both positive pips and negative pips value, it depends on the direction of the market in relation to its support or against the trader in question.
Take for example the price of EURUSD, If EURUSD has a market price of 1.1500 when the trader enter a trade, and when the market moves from its current price to 1.1550 in 3 hours, we will then say that the market has moved 50 pips, because 1.15501.1500= 50pips when multiple the sum with 10,000 unit, as a result of the consideration of the decimal place of the subtracted figures.
In the above example, we have a a positive pips value of the traders choose a Buy direction, but in the case the trader chooses the Sell direction, the pips value will be negative (50)pips.

Forex in the blood
Please select a category to choose from:  Cancel
Re: What is a pip in forex trading?
In general forex trading, when we refer to pip, we generally refers to point in percentage, Just like an acronym , P. I. P. It can be certain as the very small measure or quantified of change in a currency pair asrelated to the business of forex market. Generally, usually $0.0001 for U.S dollar related currency pairs, on a larger scale is commonly seen as 1/100th of 1percent. Going forward, This standardized size helps to protect investors from huge losses.
Also, for better understanding, the effect that a onepip change would amass in the dollar amount, or pip value, is dependent on the actual amount of euros purchased.
When discussing foreign exchange trading, the basic unit of measurement to express the change in value between two currencies is what is referred to as a PIP. It is the short for percentage in point or price interest point. For over the years, it has been seen to be the smallest numerical price move or change in the market. For when there is a change in price, generally it is called a Pip or Pipette change
For the posts posted after 25.02.19 the likes will be displayed after 25.04.19.

Re: What is a pip in forex trading?
A pip means point in percentage. It is a very small measure of change in the price of a currency pair in the forex market. A pip is usually 1/100th of 1% of the value of the currency. It helps to maintain accountability in the forex market. The pip is usually expressed in the fourth decimal place, but it is also sometimes expressed in the fifth decimal place in some trading platforms by further subdividing it into 10 units.
The average daily pip movement of a currency pair can be determined by the trader in order to predict the probable price target during a trading day in the forex market. It also enables the trader to choose a potentially profitable currency pair to trade, and decide on the amount of profits to target for trades placed in the market.
POSSIBILITIES ARE INFINITE IN THE FOREX MARKET, YOU CAN ACCOMPLISH ANYTHING !

MT5 Rookie
Please select a category to choose from:  Cancel
Re: What is a pip in forex trading?
Originally Posted by
GhostMode
This is a question on the lips of all Forex Newbies in this business. Let's do justice to this topic by discussing about what a pip is in Forex?
A pip, short for percentage in point or price interest point, is known to be the smallest numerical price move in the exchange market. When a price changes on the exchange it is generally referred to as a Pip/s or Pipette change. As most currency pairs are priced to 4 decimals places ($0.0001) the smallest change would be to the last number after the decimal point for example: $0.0001 which is illustrated as the one indicated on this example. The difference between a pip and pipette is simply a 5 decimal place and not 4 such as a pip.
For most pairs a pip is equivalent to 0.01% or 1/100th of one percent, this value is also commonly referred to as BPS. A basis point (BPS) refers to a common unit of measure for interest rates and of their financial percentages. One BPS is equal to 1/100th of 1% or 0.01% (0.0001) and denotes a percentage change in the exchange rate.

Re: What is a pip in forex trading?
The term pips in the forex market can be in a negative or positive for for traders in the market, which means forex price can move a pip in favour or against a trader,
what is a pip?
A pip is an incremental price movement, with a specific value dependent on the market in question. To out it in a simple form , it is a standard unit for measuring how much an exchange rate has changed in value.
For example let's say we bought EurUsd pair at 1.1402 and the on the next couple of hours the price move up to 1.1412 this means the price has moved 12 pips in favour of our trade if we had sold the price it will means it moved against our position.
Though this is one of the things a beginner need to first learn about the forex market.
For the posts posted after 25.02.19 the likes will be displayed after 25.04.19.

Every point of the market movement are called pips. When the market point goes according to our way then this is called green pips and from this greed pips we can make profit. And when point goes against our trade then this is called negative pips or red pips which provide us loss. In forex market moves is with this tips. Pips are the way to count our profit or loss. Before a trade open we must need to count about how much pips we can make loss from this trade and how much profit we can make from this trade. If profit pips are more than losing pips then we can say this earning pips is good trade. Before open trade we can set the pips value. We can set it in various figures. Normally I set my pips value 10 cent per pips that means if the market goes against me then I make loss 10 cent per pips and if the market goes on me then I make 10 cent profit from every pips.
For the posts posted after 25.02.19 the likes will be displayed after 25.04.19.

My pips hand is weak
Please select a category to choose from:  Cancel
A pip is a very small measure of change in a currency pair on the forex market, short for a point in percentage. It can be measured with regard to the quota or the currency. A pip is a standardized unit and the smallest amount that can change a currency quote. It is usually $0.0001 for currency pairs related to the US dollar, more commonly referred to as 1/100th of 1%, or one base point. This standardized size protects investors against enormous losses. For example, if a pip was 10 basis points, a single pip change would lead to higher currency volatility. Assume that we have a direct quote of 0.7747 USD / EUR. What this quote means is that you can buy around EUR 0,7747 for US$ 1. If this quota has been increased by one pip( to 0.7748), the US value The dollar would increase compared to the euro, as US$ 1 would allow you to buy a little more euros. The effect that a one pip change has on the dollar amount or the value of the pipeline depends on the amount of euros. If an investor buys US ˆ 10,000 The price paid in dollars is US$ 12,908.22([ 1/0,7747] x 10,000).