Okay so maybe I’m just really terrible at math, but I’m a bit confused at the moment. I was in the section on the School of Pipsology where they were discussing how to calculate pip value. The example formula stated was:

(The value change in counter currency) times the exchange rate ratio = pip value (in terms of the base currency

So using the example of 1 pip move in value of the quote currency at an exchange rate of GBP/USD - 1.2654

that would make the exchange rate ratio 1 GBP/1.2654 USD

If there was a 1 pip move that would be a .0001 in change to the counter currency in this case USD (Correct me if I’m wrong so far.)

Using the formula that would make the equation .0001USD(1GBP/1.2654USD)

Now this is where my confusion is…

It’s been awhile since I was in algebra but if I remember correctly you would divide on both sides making t .0001/1.2654 = which is 7.90 x 1 = 7.90 meaning it’d be 7.90 in GBP per pip and then you’d have to calculate that back into your account currency to see what it would be in dollars (for my case) when you close the tried by executing an opposite order to your original.

Somehow my math is off because I have a feeling the correct answer is .790 in GBP

What am I doing wrong?