Pip Calculation

Beginner Questions
1

Greetings,
Newbie question :slight_smile:

In the school article ‘Pips and Pipettes’ is says to find the value of a pip in USD, you should follow the following formula (as an example)

•USD/CAD at 1.4890

.0001 divided by exchange rate = pip value
.0001 / 1.4890 = 0.00006715

I think that the formula should be multiply rather than divide (i.e. .0001 * 1.489 = .0001489). Am I correct?

Snakeoids.

2

Wait…I think that I’m confusing myself. Sorry. Please disregard questions.

3

There’s also a handy pip-value-calculator, you can view it at this link:
Pip Value Calculator, Pip Calculator, Pip Value Information

It does all of the calculations for you for all currency pair USD value.

4

Very cool. Thank you.