John Starks Posted April 24, 2012 Report Share Posted April 24, 2012 When price moves lets say one pip, what EXACTLY does that mean? What is the mathematical model behind it? WHo calculates the pip change. Quote Link to comment Share on other sites More sharing options...
iwjw Posted April 24, 2012 Report Share Posted April 24, 2012 it's supply and demand if there is a best ask at 1.000 and next higher ask is at 1.001 price will move one unit higher as soon all of the 1.000 offered are taken out by the buyers. If there were no seller at 1.001 but 1.002 price would move two units at once vice versa applies for price moving down Quote Link to comment Share on other sites More sharing options...
shabz Posted April 24, 2012 Report Share Posted April 24, 2012 Think of it in terms of an auction. If the bids go higher price will move up. Quote Link to comment Share on other sites More sharing options...
Ramon Ramirez Posted April 26, 2012 Report Share Posted April 26, 2012 it's supply and demand if there is a best ask at 1.000 and next higher ask is at 1.001 price will move one unit higher as soon all of the 1.000 offered are taken out by the buyers. If there were no seller at 1.001 but 1.002 price would move two units at once vice versa applies for price moving down  thank you for your response mate, I really appreciate it. :) Quote Link to comment Share on other sites More sharing options...
123456789 Posted April 26, 2012 Report Share Posted April 26, 2012 When price moves lets say one pip, what EXACTLY does that mean? What is the mathematical model behind it? WHo calculates the pip change.  go search microstructure stuffs and study them, do not forget this is a great forum. 8-) Quote Link to comment Share on other sites More sharing options...
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