**"I don’t understand what babypips is trying to explain below it makes no sense to me. They say to divide the found pip value by the exchange rate but when you do so I get a different answer than what was given also they multiply based on the answer not divide, and why would you divide when GBP is a stronger currency than USD. Wouldn’t you multiply in order to get the correct amount in USD?"**

If the “found pip value” currency is the same currency as the base currency in the exchange rate quote:**

**Using the GBP/JPY example above, let’s convert the found pip value of .813 GBP to the pip value in USD by using GBP/USD at 1.5590 as our exchange rate ratio.**

**If the currency you are converting to is the counter currency of the exchange rate, all you have to do is divide the “found pip value” by the corresponding exchange rate ratio:**

**.813 GBP per pip / (1 GBP/1.5590 USD)**

Or

**[(.813 GBP) / (1 GBP)] x (1.5590 USD) = 1.2674 USD per pip move**

**So, for every .01 pip move in GBP/JPY, the value of a 10,000 unit position changes by approximately 1.27 USD.