Forex Demo
fxcm-web
btn_demoaccount-web
btn_liveaccount-web
btn_platformdl-web

Forex Demo Account

Type the code in image:

Javascript Must be enabled for
the form to submit properly.

Free Forex eBooks

Safe email! Unsubscribe anytime!

Forex Webinars

Free Registeration for:

Monday session
 Wednesday session
Thursday session

  • mr_forex

    “Nearly all men can stand adversity, but if you want to test a man's character, give him power. ”Abraham Lincoln

    by mr_forex about an hour ago

Pips

The pip is defined as the smallest increment a currency pair can take. For instance, for the USD/CAD pair, a pip is 0.0001. For the USD/JPY pair a pip is 0.01. A pip is also known as a point.

Recently, many Forex brokers changed their price quotes from a 4 digit quote to a 5 digits one. This practically changed the smallest increment a currency pair can move, but the pips have remained the same.

There used to be a trick that you could use with 5 digits quote to know what a pip is, but it doesn't work everytime anymore:

The trick is simple: take the exchange rate and count 5 digits backwards. For instance, today, the USD/CAD is at 1.04328 (a 5 digit quote). Count 5 digits from the first: 1, 0, 4, 3, 2. The 2 is the 5th digit in the quote and it's at the 4th position after the decimal point, so a pip for the USD/CAD is 0.0001. This is also true for the EUR/GBP, EUR/USD and a lot of other currency pairs.

For the USD/JPY it's a different story. The USD/JPY exchange rate was historically over 100 Yen for a Dollar. This is why the Pip value for the USD/JPY is 0.01. However, the USD has lost value in relation to the Yen, so it's value today stands at 86.693. Even so, a pip is still 0.01, because this used to be the place of the 5th currency in the quote. This is also true for the CHF/JPY and other currencies involving the Yen.
 
Newest<<fx bank online investment pipfx bank online trading onlinefx bank online trading bankfx bank online trading investmentfx bank online trading trading>>Oldest

  • Pips Miner! 515% Profit In 1 Month - The Most Profitable Forex Robot. http://ow.ly/16oWCi

    by BaliArtSpace (BaliArtSpace) Saturday, 23 January 2010 03:18

  • Pips Miner! 515% Profit In 1 Month - The Most Profitable Forex Robot.: Affiliates: Incredible Commission = 60% + $... http://bit.ly/5caW1u

    by newmdls (newsmovies) Saturday, 23 January 2010 02:58

  • Do you Trade Forex, can you use an extra 1,000 PIPS a month, with the opportuniy to get them guaranteed? Go here now: http://4rexacto.com/

    by Forexacto (Forexacto) Saturday, 23 January 2010 02:40

  • Are you looking to trade the Forex? Over 1,500 PIPS gained in 15 Days!Visit us Now and learn how! http://4rexacto.com

    by Forexacto (Forexacto) Saturday, 23 January 2010 02:18

  • The with All the ODDs Forex trading technique uses 3 correlated currencies and VOLUME to make pips http://forextradersupportservices.com

    by LongCandleForex (LongCandleForex) Saturday, 23 January 2010 01:33

  • Forex Pip Snager - Taking Pips In Forex - TODAY http://cbtopsites.com/review/pipsnager

    by PDFeBooks (Linda Helen) Saturday, 23 January 2010 01:09

  • I had a great first week of trading $forex running GTS in training wheel mode :-) Had avg of 29 pips/day and all positive. I'll B back!

    by mnforex (Henry Griner) Friday, 22 January 2010 23:03

  • Others: EASY FOREX TRADING STRATEGY EARNS 44 PIPS | FOREX TRAINING http://bit.ly/8QEkDR

    by forexstrategies (Forex Strategies) Friday, 22 January 2010 22:10

  • The with All the ODDs Forex trading technique uses 3 correlated currencies and VOLUME to make pips http://forextradersupportservices.com

    by FXALLtheODDs (With All the ODDs FX) Friday, 22 January 2010 21:04

  • Forex Signal. Close out EUR/USD @ 1.4142 for +36 pips profit. 4:02pm EST.

    by signal4u (Hung Do) Friday, 22 January 2010 21:02

  • since 15th Oct 09 We are up 2672 pips thats 41 pips/day/average Forex LIVE trading and education Free trial http://aatradersclub.guerilla.dk

    by aatradersclub (anders baard larsen) Friday, 22 January 2010 20:47

  • #forex Trade 86132858 Closed EURCHF buy 1.4735 Pips: 15.7 total: 888.9 autotrade: http://bit.ly/6ZyYIG info: http://bit.ly/6DSyW4

    by FxSignals4Free (Kamil Burzynski) Friday, 22 January 2010 20:37

  • #forex Trade 86121066 Closed EURCHF sell 1.4719 Pips: 16.2 total: 873.2 autotrade: http://bit.ly/6ZyYIG info: http://bit.ly/6DSyW4

    by FxSignals4Free (Kamil Burzynski) Friday, 22 January 2010 19:51

  • Forex Signal Service Averages 284 Pips Per Week.: Massively Successful Forex Signal Service Is The Perfect Upsell/... http://bit.ly/6ncDoX

    by cheawe (cheawedondang) Friday, 22 January 2010 19:33

  • Know your forex terminology. Pips are not just apple seeds and you can't light up a Doji candlestick.

    by forexcamp (Jim Blessing) Friday, 22 January 2010 19:33

Newest<<fx bank online investment pipfx bank online trading onlinefx bank online trading bankfx bank online trading investmentfx bank online trading trading>>Oldest
Your Ad Here