Babypips schools calculation is confusing for me, need help?

Hiya,

Thnx a lot for school! but I don’t understand this:
“EUR/USD at an exchange rate of 1.1930: (.0001 / 1.1930) X 100,000 = 8.38 x 1.1930 = $9.99734 rounded up will be $10 per pip
GBP/USD at an exchange rate of 1.8040: (.0001 / 1.8040) x 100,000 = 5.54 x 1.8040 = 9.99416 rounded up will be $10 per pip.”

This is not logically correct: " (.0001 / 1.1930) X 100,000 = 8.38 x 1.1930 " also " (.0001 / 1.8040) x 100,000 = 5.54 x 1.8040"

even if you do this 0.0001 X $100K= $10, so why you multiple and then divide to same number, while equations is not mathematically correct and logically doesn’t have mean?

Thnx

If my understanding is correct, is because it depends on the base/quote

In this case the 8.38 is in EUR, to obtain the number in USD you multiply it with the conversion rate, which is 1.1930, so the value of a pip is either €8.38 or $10

Here, its the same, a pip value for this pair would either be £5.54 of $10

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