Understand meaning of a Pip

In Forex, currencies are traded in fractions. The pip is the smallest unit of calculation for your trade in a currency pair.

Get Offer before Expiry:
(Outbound Promotion Sites)

Other Cryptocurrency Accounts:

1.Coinbase- Free $10
 Many countries...

2.Remitano- Escrow Service
 United States, Australia, Nigeria,..

3.Luno- Local Bank Transfer
 Malaysia, South Africa,..

4.CCBM- Crypto MLM
 Free $50 ICO

Most pairs have the decimal point, immediately after the first digit, with four decimal points to follow.

For example, when EUR/USD is equals to 1.1783, a single pip equals the smallest change in the fourth decimal place, 0.0001.

From the above Example:

If you buy the EUR/USD at 1.17834, which is quoted with 5 digits in all out of which 4 decimals, and sell it later at 1.18199.

The difference is +37 pips, or 0.0037. Some brokers use 4 digits instead of 5 digits also.

EUR/USD 1.27644 mean that 1 EUR is traded for 1.27644 USD (You need 1.27644 USD to buy 1 Euro).

However, in JPY currency pair, pip is calculated with only 2 decimals. If you bought the USD/JPY at 113.516 and it then went down to 113.325 where you have sold it, the difference would be -19 pips, or 0.19 loss.

The PIP differences will be used for calculation of profit/ loss.

Home | Forex | Contracts for Difference | Disclaimer | Privacy Policy | Contact

Cryptocurrency | Bid-and-Ask | Country Currency Acronyms or Abbreviations |  More > Top


Risk Disclosure: Trading financial instruments involves certain amount of risk. These financial
instruments is not suitable for everyone. You may experience losses.

This website is best viewed with Google Chrome Internet Browser 1024 x 768 screen resolution.

©2017 - FxTrading - All right reserved.