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As you get familiar with the Forex market, you'll notice most people don't speak in terms of profit, but in terms of "pips". You may feel uncomfortable with this notion at first (I was), but it is important to understand it.

P.I.P. stands for "Percentage In Points". This is a convenient way to express your activity, whether it's a profit or a loss.

A pip is the smallest movement of a currency. For example, in the EURUSD pair, a move from 1.5875 to 1.5876 represents 1 pip. Most pairs are quoted with 4 decimals (1 pip = 0.0001), at the exception of the JPY which is quoted with 2 decimals only (1 pip = 0.01).

Definition:

A percentage in point (pip or point) is the smallest measure of Price move used in forex trading. For instance, if the currency pair EUR/USD is currently trading at 1.3000 and then the exchange rate changes to 1.3010, the pair did a 10 pips (smallest units) move.

The pip is the smallest measure regardless of the fractional representation of the currency exchange rate. Thus, 1.3000 to 1.3010 is the same move in pips terms as 110.00 to 110.10. In order to calculate the pip value or how much is one pip, some additional information is needed, such as: trading size, leverage used, and the actual rate of the pair for which you want to calculate the pip value. For example in case of US Dollar, with leverage of 1:100 and trading volume of 1 lot, the minimum fluctuation point will be 10 USD.

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Posted

there is broker that have a difference of the value of 1 pips, it is because the difference of the contract size, the example in FBS has a contract size is 100,000 then the value for the volume of 1 lot is equal to $ 10 / pips but there are also brokers that have contracts of 10,000 then the value for volume 1 lot is equal to $ 1 / pips

Breakeven Trading

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  • 5 months later...
Posted

It is very important that you understand what is a pip in the Forex trading coz you will be using pips in calculating your profits and losses. A “pip” stands for “Percentage in Point”. A pip is the smallest price movement of a traded currency. It is also referred to as a “point”.

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Posted
On September 28, 2008 at 7:17 PM, StefGrig said:

As you get familiar with the Forex market, you'll notice most people don't speak in terms of profit, but in terms of "pips". You may feel uncomfortable with this notion at first (I was), but it is important to understand it.

P.I.P. stands for "Percentage In Points". This is a convenient way to express your activity, whether it's a profit or a loss.

A pip is the smallest movement of a currency. For example, in the EURUSD pair, a move from 1.5875 to 1.5876 represents 1 pip. Most pairs are quoted with 4 decimals (1 pip = 0.0001), at the exception of the JPY which is quoted with 2 decimals only (1 pip = 0.01).

 

Please be free to share with us your experience, ideas and knowledge....

I would like to know is it better to trade on 5 or 4-digit platforms. I have 5-digit platform with Hotforex is it good for scalping?

Posted

I prefer OctaFX broker since they’re one of the most simple and straight forward companies in the world, but still they don’t stop here, they have outstanding conditions which includes having low spreads to high leverages to bonuses up to 50% and much more, it’s all seriously useful and allows us to be successful without any trouble whatsoever, I also feel relaxed with them given their instant payment facility, it’s all too good and something that makes one very comfortable and relaxed.

  • 5 months later...
Posted (edited)

broker itself is contributing factors that influence the success of a trader, then the selection of a broker for a trader is very important, suggested to traders do not just choose a broker who gives comfort in trading, however, select the broker that also supports the trading success of a trader , in order to get the maximum profit with the risk that can be minimized optimally. together Tickmill, I trade with all the support that is given to me as a trader. trader himself can also follow promo demo account contest with prizes have been provided

Edited by uncle gober
  • 3 months later...
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Posted

The unit measurement to express the change in value between two currencies is called a percentage in point in short (P.I.P). Most pairs in forex have 4 decimal places except some currencies like Japanese yen pairs. Japanese yen pairs have two decimal. To take profit in forex we must have to know what pip is and how to calculate it. If you really want to know you can get connected with AAFX. I am using this broker for my trading and learning forex.

  • 6 months later...
Posted

One of the most common words we have heard in forex market is pip which means percentage in point and shows the changes in value of exchange rate of two currencies. Forex market expresses currency exchange rate in 4 decimals in most cases, except some currencies are expressed in 2 decimals like Japanese yen. So the pip will be the changes in 4th digit of the decimal. For example, if exchange rate will change from 1.9784 to 1.9783 then it will be 1 pip (.0001)­ change.

  • 1 month later...
Posted

The full type of Pip is ''Percentage in Point'. A pip is the last digit in the estimation of a currency pair (in the event that you are trading from a 4 digit price support); 1.3294, 115.13 et cetera. All Forex currency pairs, except for the Japanese Yen, measure the pip from the fourth decimal place. The pip gap between purchase and offer price is called spreads. We traders cherish low spreads. I am trading with MaximusFx where I get low spreads as low as 0.1 pip.

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  • 6 years later...
Posted
On 3/12/2012 at 11:43 AM, katie27 said:

In simple terms, a PIP is the smallest value (price) increment a currency can make. Forex PIP allows us to determine a rise or fall in foreign exchange values in percentage terms as an alternative of measuring in dollars and cents.

trade binary options

Yeah I prefer to measure and set profit and stop loss targets in terms of pips and then choose respective lot size, so that max risk I take do not exceed 1% per trade

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