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  • mr_forex

    “Respect yourself most of all.”Pythagorus

    by mr_forex about 5 hours 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.
 
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  • +532 for today pips on Forex Dashboard automated EA http://tinyurl.com/ycln9al

    by forex_wealth (stephen nefdt) Tuesday, 26 January 2010 10:44

  • Order ID: 3 | Update| $EURJPY Sell 126.15 | Currently at +5 Pips [ #Forex #Currency #MKT #Fx #EURO #USD #JPY #GBP #Dollar ]

    by FirePips (FirePips) Tuesday, 26 January 2010 09:58

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    by quantts (Louis Winthorpe IV) Tuesday, 26 January 2010 09:52

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    by FxSignals4Free (Kamil Burzynski) Tuesday, 26 January 2010 09:30

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    by FxSignals4Free (Kamil Burzynski) Tuesday, 26 January 2010 09:18

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    by TraderForexfr (Trader-Forex) Tuesday, 26 January 2010 09:13

  • #forex Trade 86549745 Closed USDCHF sell 1.0434 Pips: 15.9 total: 298.5 autotrade: http://bit.ly/6ZyYIG info: http://bit.ly/6DSyW4

    by FxSignals4Free (Kamil Burzynski) Tuesday, 26 January 2010 09:00

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    by theForexArticle (Forex) Tuesday, 26 January 2010 08:36

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    by forexarsenal (Milan Traffic) Tuesday, 26 January 2010 08:35

  • #forex Trade 86558787 Closed EURUSD buy 1.4103 Pips: 29.7 total: 282.6 autotrade: http://bit.ly/6ZyYIG info: http://bit.ly/6DSyW4

    by FxSignals4Free (Kamil Burzynski) Tuesday, 26 January 2010 08:08

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  • #forex Trade 86589959 Closed EURGBP buy 0.8683 Pips: 73.7 total: 252.9 autotrade: http://bit.ly/6ZyYIG info: http://bit.ly/6DSyW4

    by FxSignals4Free (Kamil Burzynski) Tuesday, 26 January 2010 08:00

  • Forex signals 50-70 pips daily http://urls247.com/?xM85e

    by forex2profits (forex2profits) Tuesday, 26 January 2010 07:50

  • #forex #mkt CMNTS: OMG a 100 pips fall and I was a sleep. Grrr. This could be some nice profit. I should be a wake fo... http://piphut.com

    by PipHutComments (PipHut.com) Tuesday, 26 January 2010 07:45

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