Pip Value

Beginner Questions
1

Hi All
I am new to this and am currently undergoing a babypips education :)…
I was just wondering when looking at an actual currency value i.e when looking at the bid and ask displays, I understand that the pip value should be displayed. But I cant see this anywhere, am I missing something?
Can anyone please help??

Thanks

2

Hi, astavrou, welcome to this Forum.

If you’re asking whether pip-values are related to the bid/ask spread — the answer is no.

If you’re asking whether your trading platform should be displaying the current pip-value for each pair (along with the bid and ask prices), and, if so, where that info is shown — that depends on the broker platform you are using.

There are 4 things that determine a pip-value:

• your account currency,

• the cross-currency of the pair you are trading,

• the current ASK price of that cross-currency in terms of your account currency, and

• the lot-size of your trade.

And there are 3 ways to get the pip-value you are looking for:

• the hard way: calculate it by hand

• the easy way: use a pip-value calculator, such as Pip Calculator: Free Online Forex Pips Calculation Tool for Traders

• the really easy way: read it directly from your broker’s trading platform.

Here’s an example. Note: this is a very old file photo, so ignore the actual numbers shown here.

645×637

For more on how pip-values are calculated (the hard way), including examples, here are some other posts on this topic:

http://forums.babypips.com/newbie-island/40678-math-behind-pip-value.html#post280087

http://forums.babypips.com/newbie-island/40678-math-behind-pip-value.html#post280099

http://forums.babypips.com/newbie-island/30547-how-calculate-pip-value-profit.html#post146430

1 Like