Resolved Question
I just want to ask some questions about pip values.
Hi, I’m new to forex and I’ve been trading for few months now. I know “1 pip is 0.0001 for USD/CHF and 0.01 for USD/JPY”. How about EUR/USD and other major pairs?
over 2 years ago
Best Answer - Chosen by Voters
A pip is the smallest price change that a given exchange rate can make. In your example, 1 pip equals 0.0001. But some broker nowadays use a smaller unit of measurement - micropips. Like some quote EUR/USD as 1.40001... Notice the last "extra" point. To answer your question: one pip for EUR/USD, GBP/USD, USD/CHF, USD/CAD, AUD/USD, USD/NZD is equal to 0.0001. For GBP/JPY, USD/JPY, EUR/JPY , one pip is equal to 0.01.
over 2 years ago
Answers (4)
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Always base it to the decimal places an exchange rate has. Like for example, EUR/USD has an exchange rate of 1.1983 and it moves to 1.1982, that is one pip. A pip is the last decimal place of the exchange rate. So if the rate changes from 1.1982 to 1.1987 that is 5 pips.
over 2 years ago
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Hmm, let's clear things up a bit. You are correct in saying that 1 pip of USDCHF is equal to 0.0001 and 1 pip of USDJPY is 0.01. But PIP VALUE means a whole other thing... A pip is the last decimal place of a quotation. As each currency has its own value, it is necessary to calculate the value of a pip for that particular currency. For instance, let's assume that USDJPY is currently at 95.50. One pip would be 0.01 but its pip value is calculated by dividing 0.01 by the exchange rate which is 95.50. So the USDJPY pip value is currently at 0.000104712. You might want to check out the BabyPips School of Pipsology for other examples... I provided the link below.
over 2 years ago
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Most of the online retail forex brokers nowadays have a pip calculator included in their platform. So if you happen to forget the pip value of any given pair or get confused with the micropips, then you may want to use the mentioned tool instead. The pip calculator usually allows users to enter the pair, desired trade and position size plus the entry and exit prices. It will automatically compute the profit or loss depending on the data that you input.
over 2 years ago
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