The pair at June 28, 2010 opened at 1161.45
This continued a bullish trend for three months ending around the second week of October closing at 1380.8
There is a difference of [B]219.35[/B]. How much pips are created here?
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XAU is typically quoted in dollars per ounce. and you typically buy an ounce at a time. it’s direct, just like buying stocks. the difference in your example was $219.35 for every ounce you bought.
you do have to account for the spreads, though. i assume you have?
I believe that it is generally accepted that a 10 cent move is 1 pip, but sometimes I will see people using 1 cent.
IMO your example is 2193.5 pips
I pip is equal to 0.0001, now you calculate…
Although there may be some confusion, there is no confusion that your reply is totally wrong.
As no broker, as far as I am aware quotes with more than 2 digits after the decimal point, that would mean that every tick would be 100 pips and that would be ridiculous
duplicate post edited by me.
I think you do not have any basic knowledge! Before saying anybody wrong try to learn first! In your next reply I want to see your example of what is 1 pip and the source of your information! It seems you even do not know how to read quotes! Every broker quotes up to five decimal!
as indicated by user “dollareuro”, you have no idea what a pip is. one PIP is one “percentage in point”, by definition, which is 1/100th of 1%, or 0.0001 as previously shown.
and yes, since XAU/USD is typically quoted as (for example) 1437.65 each increment is 100 pips, because gold is quoted in US dollars per ounce, and yes the spreads are around 0.30 to 0.50 dollars, so it’s all quoted to two decimal places, each “tick” as you call it (which by the way is incorrect usage of the word tick) is 100pips, and it is not ridiculous.
the same way that AAPL (the stock for Apple) is quoted as 395.66 which is to two decimal places and each “tick” here will also be 100pips.
except that pips aren’t typically used when quoting stocks, commodities, or gold (XAU/USD)
You may define one PIP as one “percentage in point”, what does that mean? 3 words put together that are meaningless.
Forex and commodities are not quoted in percentages the way that interest rates are.
You seem to have mixed your definition with the definition of “basis point” which is indeed 1/100th of 1%
You may also refer to a pip as “price interest point”
By your definition a movement from 99.10 to 99.11 in the USDJPY would be 100 pips??
No it is not! Everybody but you understands that that is a single pip movement.
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you, sir, are a fool.
i am not the one DEFINING a pip as a “percentage in point”, it IS the actual definition of it. “pip” is an acronym. pip and basis point are effectively the same here. pips are used in forex, basis points are used in interest rates.
interest rates are quoted in percentages, yes. but it’s also possible to have a percentage of a non-percent number. i mean, you DO know what the definition of “percent” is, right? it’s “per cent”, as in “per 100 units”. you can subdivide interest rates into percent, or you can subdivide cheesecake into percent. you can even have a pip of cheesecake. yummy, but not terribly satisfying, as i myself would prefer 10k pips of said cheesecake.
in regards to the Japanese yen, the reason it is like that is because the yen is NOT commonly subdivided any deeper than, well, the yen. the dollar is subdivided into cents (or pennies). the yen isn’t. so the “big yen” is 100 yen (kind of like the 1 dollar), and the actual yen is like a penny.
everyone but YOU understands this CONCEPT.
I think it is you that is a fool by providing a link that proves you wrong.
From the link
[I]Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point - for most pairs this is the equivalent of 1/100 of one percent, or one basis point.[/I]
Note that it states MOST pairs.
As I said in my earlier post…
By your definition a movement from 99.10 to 99.11 in the USDJPY would be 100 pips??
No it is not! Everybody but you understands that that is a single pip movement.
You actually believe that would be 100 pips? What is the spread, 200 pips?
try reading the second part of my last post.
i’m done here. you obviously can’t read much.
Depends on your account base currency, if it’s in USD, any USD ended pair will cost you 10 USD per pip on a standard lot.
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I feel I must add the following example here:
The unit of measurement to express the change in value between two currencies is called a “Pip.” If EUR/USD moves from 1.2250 to 1.2251, that .0001 USD rise in value is ONE PIP. A pip is usually the last decimal place of a quotation. Most pairs go out to 4 decimal places, but there are some exceptions like Japanese Yen pairs (they go out to two decimal places).
If Mr./Ms. Loong do not agree with the above, I hope baby pip moderators will look into this user’s comments and take action for confusing newbies…
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I agree with every thing that you write in this post.
I disagreed with what you said in your previous post where you said that a pip is always 0.0001 and that every broker quotes up to 5 decimal (which I am sure that newbies may find confusing)
I can read very well and no matter what you said in the 2nd part of your post, you did not address the fact that you incorrectly stated
[I]“as indicated by user “dollareuro”, you have no idea what a pip is. one PIP is one “percentage in point”, by definition, which is 1/100th of 1%, or 0.0001 as previously shown.”[/I]
Yes, with most pairs, this is true, but a pip is not always 0.0001 and there is no way that you can dispute that.
You’ve been proved wrong, so why not just admit it?
Except in the case of JPY, all pip is always 0.0001 as far I have found. If you know any pair other than JPY, let us know cause we do not mind learning but do not just say “you are wrong” in a…way!!! I would appreciate examples if you know any pairs where the pip calculation refers something else other than 0.0001.
I never said pip is always 0.0001 rather I said the person to calculate who started the thread! And only JPY is an exception and we all know that exception is not an example! So your comment against my first post :"…there is no confusion that you are wrong…" is not acceptable anyway!
Can you attach a sample where a broker is quoting less than 5 decimal for a currency pair? I have never seen any broker quoting less than 5 decimal! I will still say that all is quoting 5 decimal, you should prove it with an image to make us sure that you are correctly reading the quotes!
Why do you need proof when you have already accepted that brokers do not quote JPY pairs to 4 0r 5 decimal places?
FXPro quotes NZDJPY to 2 decimal places
You have probably missed the line I posted: “Exception is not an example”. It is me who posted about the exception (informing that JPY is an exception) and not you.
Now you tell me why you commented: “there is no confusion that you are wrong” !!! Lets accept that you knew (!) JPY is different but you can not say the whole thing wrong for a single exception! If you approach in this way to a statement, you will simply get zero…
So instead of saying SoundOfLight to admit, you better admit your wrong comment first!