Hello, Tiny

Welcome to this forum.

In every currency pair EXCEPT yen pairs, the value of 1 pip is 1/10,000 of a UNIT of the quote currency.

In every yen pair, the value of 1 pip is 1/100 of a UNIT of the quote currency (that is, 1/100 of a yen, because in every yen pair, the yen is ALWAYS the quote currency).

In every trade, the value of a 1-pip move is the pip-value defined above TIMES the number of units in the trade. There are no exceptions to this statement.

Examples:

• You trade EUR/USD. Your position size is 10,000 UNITS (i.e., 1 mini-lot).

One pip is 1/10,000 of one USD. That is, 1 pip is $0.0001

The value of a 1-pip move (in this trade) is $0.0001 x 10,000 which equals $1.

The value of a 10-pip move is $0.0001 x 10,000 x 10 which equals $10. And so forth.

If your account is denominated in USD, then these values are stated the way you want them.

• You trade EUR/GBP. Your position size is 10,000 UNITS.

One pip is 1/10,000 of one GBP. That is, 1 pip is £0.0001

The value of a 1-pip move (in this trade) is £0.0001 x 10,000 which equals £1.

The value of a 10-pip move is £0.0001 x 10,000 x 10 which equals £10. And so forth.

If your account is denominated in USD, then you don’t want your P/L stated in terms of GBP.

You want P/L stated in terms of USD. So, a conversion from GBP to USD must be made, and this involves the current price of GBP/USD. Let’s say the current price of GBP/USD is 1.2882. This can be written as £1 = $1.2882. Therefore, simple math tells us that for this trade, given the current price of GBP/USD, a 1-pip move is worth $1.2882, and a 10-pip move is worth $12.882

• You trade EUR/JPY. Your position size is 10,000 UNITS.

One pip is 1/100 of one JPY. That is, 1 pip is ¥0.01

The value of a 1-pip move (in this trade) is ¥0.01 x 10,000 which equals ¥100.

The value of a 10-pip move is ¥0.01 x 10,000 x 10 which equals ¥1,000

If your account is denominated in USD, then you don’t want your P/L stated in terms of JPY.

You want P/L stated in terms of USD. So, a conversion from JPY to USD must be made, and this involves the current price of USD/JPY. Let’s say the current price of USD/JPY is 113.34. This can be written as $1 = ¥113.34. Therefore, simple math tells us that for this trade, given the current price of USD/JPY, a 1-pip move is worth ¥100 / 113.34 which equals $0.8823. And a 10-pip move is worth $0.8823 x 10 which equals $8.823

• You trade AUD/CAD. Your position size is 10,000 UNITS.

This one is for you to work out. See if you can do it.

I hope this has been helpful.

.