Pips

Beginner Questions
#1

Dear All,

I have start with a trade journal which I try to fill in as accurate as possible… because i don’t always use the same capital to buy or sell, I also want to write down in pips. But I don´t understand that pip things I guess…
I´m not only trading Forex but also stocks.

For example:

When I Buy at 1.0001 and sell at 1.0002 I have 1 pip right?? (4 digits after dot)
But when I buy a stock at 72,03 and sell it at 89,80 how many pips did I win?? Does I need to change it to 4 digits then?? (72,0300) That is a lot and seems to me incorrect! :15:

Can anyone pls explain.

Rgds,

Menno

#2

Can someone tell me how to calculate it???
I did try school, but I still don’t understand…

#3

A pip is a standard price fluctuation. I think that in stock trading they call it points. The standard price fluctuation in fx is indeed 0.0001 (4th digit) brokers do provide 5 digit price feeds because we traders like it.

I have to mentionn that I am talking about EURUSD here. Some currencies have a different pip, like the yen.

When you like to standardize you fx and stock trades I would suggest that you take the cash profits.
I made:

  • $2.50 on that stock trade
  • $7.56 on that fx trade

I am not seeing how you can equalize both fx and stock based on pips. That would lead to a exponential difference.

#4

If one is able to make consistent number of pips then they can certainly make it to the top successful traders of the world and more fully discover financial freedom for themselves.