WHAT IS A PIP AND HOW TO MEASURE IT?

19. Dez. 2022WHAT IS A PIP?


The pips is the unit with which we measure the price movement of a pair.

Example: If the USD/MXN pair is used. If the dollar is worth 20.7 and rises to 20.8, it is said to rise to 1 cent but in FOREX it is not measured with cents, it is measured with pips.

The price of the USD/MXN chart has 3 extra decimal places 20.8000 those 3 extra decimal places are what the pips are measured with: the pip is the fourth number after the point . If the price changes from 20.8100 to 20.80101 the price moves 1 pips, if the price moves from 20.80100 to 20.80110 the price moves 10 pips and if the price moves from 20.80100 to 20.80300 the price moves 200 pips.

Pips are calculated differently depending on the pair, pairs with Japanese YEN and pairs WITHOUT Japanese YEN

https://www.tradingview.com/x/DkGZz4eO/


PAIRS WITH YEN


https://www.tradingview.com/x/LGqbDTsA/