hi
i just want to understand something on pips. if someone says your entry price is 0.72112 and your profit is in 50 pips. what is my take profit there?
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If itâs a long trade, then itâs 50 pips above 0.72112, which is 0.72612.
If itâs a short trade, then itâs 50 pips below 0.72112, which is 0.71612.
The fifth decimal place isnât a pip: itâs a âpipetteâ (0.1 pips).
The 4th decimal place is the pip-count (apart from with JPY pairs, in which case the second decimal place is the pip-count).
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It depends. From old time pip was used to be 4th decimal, nowadays somebody does understand it as the 5th decimal fractional change.
So 5th digits understanding 0.72112 +50 = 0.72162
4th digits understading 0.72112 +50 = 0.72662
So the answer depends on who told you that.
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The answer quoted by TT is correct. A pip is a pip and a tenth of a pip is a tenth of a pip, or known as a fractional pip. A Price Interest Point (pip) is always the 4th decimal place on pairs quoted to 5 decimals - the 5th being the fractional pip.
Platforms like MetaTrader still use incorrect terminology regarding this and state fractional pips as a âpipâ.
Itâs irrelevant who told you this - itâs a standard rule and a very basic one at that.
Hi @nicky17
Both @TacitaTrader and @RISKonFX are correct.
While for most popular currency pairs, the place value for 1 pip is the 4th digit to the right of the decimal point, we would add that for USD/JPY and all yen crosses like GBP/JPY and AUD/JPY, the place value for 1 pip is the 2nd digit to the right of the decimal.
For example, if you bought USD/JPY at 112.234, then a 50 pip profit would mean you set your take profit order at 112.734.
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If youâre unsure then just say mate. No shame in learning. Youâre in the right place for that. Good luck on your public account, though.
thank you so much. this was helpful to me.
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thank you, you really showed me light.
thank you so much, this is helpful
yes true, thank you so much.