Good afternoon all,
I need some help on understanding of pips. If someone says they are placing a order on USDJPY running 50+ pips. What does that mean? So far i have only been placing orders and I set when to stop gain and stop loss.
Thank you.
Pips are a way of expressing prices without using decimals.
In a pair with JPY and any other currency, a pip is indicated by the second decimal, so 1 pip is 0.01. For example, if USD/JPY was currently 102.73, you could express that as 10,273 pips. So an order 50 pips above the current price would be 10,273 + 50 = 10,323 = 103.23.
In pairs without JPY, a pip is the 4th decimal, so 1 pip is 0.0001. For example, if EUR/USD is currently 1.1842, adding 50 pips to this price would get you 1.1842 + 0.0050 = 1.1892.
Note that a pip in one pair is not worth the same percentage of its price as a pip in another pair.
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Thank you very much for the quick reply. Just have to ask, when you say 10,323 is that when the you would buy or you buy at 10,273 and being 50+ pips your jump off point would be 10,323? Sorry for all the questions just want to get a understanding before I get myself in trouble.
Thank you.
You can buy or sell at whatever price you like based on your analysis of that currency pair. I would recommend the baby pips school of pipsology as it will cover this topic and help you understand fully.
Yes, if you buy USD/JPY at at 102.73 this can be seen as 10,273 pips. So if you want to exit 50 pips higher, your target exit price would be 10,323, which is actually 103.23.
(don’t forget the spread, the difference between the buy price when you enter and the sell price when you exit)
Thank you both for the advice. I will try it out on my demo account to see how it goes. But does not seem much different from what I currently doing. Although with pips you can set your standard say for example 50 pips. But currently I just buy and I set target but I do so by what I feel is enough profit and I know this will shoot me in the foot sooner or later. I feel with pips it gives me some sort of structure that will help me shoot for a base number each day and then walk away. I have lost alot in the past due to me winning all day and instead of shutting it down I got greedy and lost all my winnings and then some. But I guess this is part of the growing pains. With each loss I ended up learning something new so I look at that has a investment in myself. Again thank you both for the advice and help.
Pip is a unit of measure of price move which is equal to 0.0001 (1/10000) for Non-JPY pairs and 0.01 for currency pairs which include JPY.
Basically pip is the smallest step (increment) of an exchange rate (not stocks, only exchange rates) used in financial markets.
For example, if EURUSD moved from 1.1235 to 1.1236 we say that the exchange rate moved by one pip.
If USDJPY moved from 104.25 to 104.26 we also say that it made one pip move.
Cheers.
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Okay, you can go through this extremely detailed answer on another thread.
Maybe I’m missing some underlying tension between you two as members but I think you’ve completely misunderstood the post, Martin?
Hi Martin,
With respect I think you should calm down. This is a public forum and people can interact with your posts.
You’ve misunderstood whatever notification you’ve received and gone off on a huge tangent twice.
Your thread was shared on this thread to help the OP and you’ve taken offence somehow to that?
Have a good day.
@Pipstradamus
Hi mate… Martin here again… if you remember from around 2 + years ago
firstly , how are you ?
Mate, i need a favour.
I would request that you delete ALL MY POSTS on this thread.
As you know i’m not active on this forum anymore, i’ve been away for a long time and (as per our conversation Eon’s ago, I have no intention to return)
The thing that is happening is… even though my notifications are turned off, I’m still receiving them.
if you could do something about that, that’d be appreciated.
but what happened this time was , i got notified by a Mod called Bipin 1800
this mod basically told me that i could go on with my detailed response on another thread.
I basically responded to the mod just to tell them “if they don’t like anything that i’ve left on this forum since my departure, Feel Free to delete it” I don’t need to be notified , i don’t need to be told to go to another thread or page or whatever…
Mate, i just want to be left alone from this site, ok
Now… as you probably remember, (to my recollection) You are the only understanding mod that i know off
so… now… it seems that some people have become a bit sensitive and are starting to tell me this and that.
Mate, i don’t have the time to do this anymore, ok , I have more important things to do that respond to people on this site who respond to things that have nothing to do with them.
so… to avoid me having to deal with this in the future (Because no doubt someone else at some point is going to come along and comment on this … can we just erase all my entries on this,
i would do it myself, but i don’t know where i can do or if i can do it
thanks mate, Please let me know when it’s done
also if you can do something abou tthose notifications that would be great
Actually mate, if it’s not too much headache…
Are you able to delete EVERY SINGLE POSTAND COMMENT I HAVE EVER MADE.
if it’s not too much trouble and effort or time, that would be awesome, because it would mean that no one would respond on anything that i’ve posted and hence it would stop the notificaitons.
is that possible ?
Thanks mate, Be Cool
Good speaking to you again.
Sincerely
Martin K