I’m sure once I get this it will be obvious and easy , but right now I can’t figure this out .
The “What is a Pip in Forex?” Lesson in the preschool section .
"Example exchange rate ratio: USD/CAD = 1.0200. To be read as 1 USD to 1.0200 CAD (or 1 USD/1.0200 CAD)
(The value change in counter currency) times the exchange rate ratio = pip value (in terms of the base currency)
[.0001 CAD] x [1 USD/1.0200 CAD]
Or Simply
(.0001 CAD) / (1.0200 CAD)] x 1 USD = 0.00009804 USD per unit traded "
I don’t know how they get 0.00009804 .
Can someone explain this in the simplest way possible , so a moron can understand it , right now I’m definitely a moron , Thanks
In USDCAD -> 1 pip = 0.0001 CAD
So you just convert the “units” because you want to know how many USD there are per pip :
( 0.001 CAD / pip ) * (1 USD / 1.0200 CAD ) * = 0.00009804 USD per pip
3xfx
May 14, 2015, 9:52pm
3
C26000:
In USDCAD -> 1 pip = 0.0001 CAD
So you just convert the “units” because you want to know how many USD there are per pip :
( 0.001 CAD / pip ) * (1 USD / 1.0200 CAD ) * = 0.00009804 USD per pip
Can you show me with a calculator the steps , exactly how you figured that out ? Thanks ,
I can’t remember the times I have referred new traders interested in this to a pips calculator.
mmm
0.0001 / 1.02 = 0.00009804
It’s similar when you try to convert from meter to centimeters. 1 m = 100 cm.
So if you have 3.3 m you multiply by “1” or what is the same 100 cm / 1 m.
3.3 m * 100 cm / 1 m , the “m” cancel each other and you get 3.3 *100 / 1 = 300 cm.
It’s the same thing with the currencies.
3xfx
May 15, 2015, 8:24am
7
Yeah it is the best 1 I have found. I like the position size calc also.
[QUOTE=“3xfx;699808”]Or the easy way Pips Calculator | Myfxbook [/QUOTE]
Calculators make life easy. For us traders that can be a big help lol.
I do find it intriguing how to calculate all these things IE position sizing, profit/pip calculations, etc. I learned how to do them all because, well I’m a Forex math head. However, it would be dumb to do these every day before every position because it’ll take time while you can easily punch numbers into the calculator and bam, there’s your answer.
C26000:
mmm
0.0001 / 1.02 = 0.00009804
It’s similar when you try to convert from meter to centimeters. 1 m = 100 cm.
So if you have 3.3 m you multiply by “1” or what is the same 100 cm / 1 m.
3.3 m * 100 cm / 1 m , the “m” cancel each other and you get 3.3 *100 / 1 = 300 cm.
It’s the same thing with the currencies.
If a 100cm = 1 meter
Wouldn’t 3.3 meters = 330 centimeters ?
ForexForte:
Calculators make life easy. For us traders that can be a big help lol.
I do find it intriguing how to calculate all these things IE position sizing, profit/pip calculations, etc. I learned how to do them all because, well I’m a Forex math head. However, it would be dumb to do these every day before every position because it’ll take time while you can easily punch numbers into the calculator and bam, there’s your answer.
Yeah maybe I shouldn’t even worry about this and just use a Pips calculator .
3xfx
May 15, 2015, 12:30pm
11
ForexForte:
Calculators make life easy. For us traders that can be a big help lol.
I do find it intriguing how to calculate all these things IE position sizing, profit/pip calculations, etc. I learned how to do them all because, well I’m a Forex math head. However, it would be dumb to do these every day before every position because it’ll take time while you can easily punch numbers into the calculator and bam, there’s your answer.
Yeah its nice to know the long math or whatever u want to call it. but like u said it would take too long.
C26000
May 16, 2015, 5:01am
12
ha… I changed the 3.0 to 3.3 then I didn’t changed 300 to 330
Still … I think you get it now.
haha…awesome ,
Thanks for clearing that up . If you didn’t I would still be thinking 3.3 = 300 ? I don’t get any of this crazy math !!
The main thing I’ve learned is use an online Pips Calculator damn it !
