What is the value of one pip?

to answer you I will use the two previous posts

if you mean one pip value .. its 0.0001

and the pip's value will depend on the pair you are trading !
 
To get the value of one pip in a currency pair, you can just divide one pip in decimal form (i.e. 0.0001) by the current exchange rate, and then multiply it by the notional amount of the trade.
 
Fore example: EUR/USD

(.0001/1.0055) x EUR100,000 = EUR 9.93

But we want the pip value in USD, so we then must multiply EUR 9.93 x (EUR/USD exchange rate): EUR 9.93 x 1.0055 = $10
 
Samira,
a lot of brokers offer a free start-up trading ebook. Take one where you can find an introduction to all the basics of forex. Asking single questions here will only delay your progress.

FX Trade Online
 
the hare said:
Other than for the absolute basics, I suggest that you dont take advice from a broker, a forum, a book, or anyone selling any product or service :LOL:

Its generally in the interest of all of the above that you fail.
Click to expand...

But without knowledge how could i jump on it ?
 
Samira Bhagvat said:
But without knowledge how could i jump on it ?
Click to expand...

Samira

it really depends on what you are jumping. That said The Hare has a point. There are plenty of places to get a basic understanding of how FX works, with examples.

Many brokers are now quoting out to 5 decimal places so you want to do your homework. Note for example that USDJPY is generally quoted out to 2 decimal places.
 
For everyone to know! this is very important,
the value of 1 pip is 0.0001 B-U-T !

the value of pip in a pair that includes JPY is 0.01 , remember that.
 
Tom Frank said:
For everyone to know! this is very important,
the value of 1 pip is 0.0001 B-U-T !

the value of pip in a pair that includes JPY is 0.01 , remember that.
Click to expand...

Tom,

a 'pip' by definition is the smallest price change that a currency exchange rate can make. So if a broker is quoting out to 5 decimal places what then? I agree convention states that say for GBPUSD the standardised unit is 0.0001.

Explaining fractional pips (ie the 5th decimal place) to someone who has not traded before is quite hard.
 
What is the opinion of BabyPips for a beginner's guide? It's helped me get the starting jist of things.
 
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