Jump to content
  • 0

How can you determine the value of a pip in a Forex market?


Ryan
 Share

Question

1 answer to this question

Recommended Posts

  • 0

Hello Ryan,
Percentage in point (pip), otherwise known as price interest point, is the slightest arithmetical price move in the foreign exchange market. That change in price during an exchange is what is known as a pip.
Generally, pip usually the fourth decimal point of a quoted price. For example, in $0.0001, the pip here is one since it is in the fourth decimal place of the stated amount.
While determining the value of a pip, you need to note that its price will depend on the currency pairs you are trading. It will also depend on the currency you will be using as your base and counter currencies. 
By determining the value of pip Forex traders can tell how the equity in their trading account will vary depending on how the market currency moves.
Each currency is usually attached to a particular market value. Therefore it is essential to determine the worth which a pip holds for every one currency pair.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. To reply to this question, sign in or create a new account.

Guest
Reply to this question

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...