I’m new here, and I’m just getting started. What’s a pip?
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It’s a unit of price movement. I would say it’s the smallest possible price movement, but pippettes have been introduced which are fractions of a pip. As a general rule (though not totally inclusive) for pairs that have the JPY in them (ie USD/JPY, EUR/JPY, etc) it is 0.01. For all others it’s 0.0001.
hadn’t thought about it before but that would be one tenthousanth of a dollar wouldn’t it? So therefore if you trade 10,000 dollars in the market each pip would be worth… one dollar.
PIP stands for “price interest point”…and all the other good stuff others said 
the first thing everybody should do when starting with forex is the school of pipsology here in this site.
it makes a forex ignorant become a forex newbie
and then you should look for more knolege in every places you find it:D
i have lost millions of hours shearching four knolege about forex and then i found out that is all in that school…and is for free:D
Actually, no. A pip on a mini in USD/JPY, for example, isn’t worth $1. It’s variable. Dollar pip values are only fixed where the USD is the quote currency.
ah you’re right. I focus all my attention the gbp/usd so wasn’t thinking of those
There are two popular acronyms for the term “pip”. One is “Percentage in Point” and the other is “Price Interest Point”. Basically, a pip is the unit of measurement to express the change in value between two currencies.
For example, seeing the AUD/USD quote going from 0.8611 to 0.8610, we would call that a price decline of 0.0001, or 1 pip. If the current price of USD/JPY is 118.13 and it goes to 118.14, this is a price rise of 0.01, or 1 pip. One pip is thus the smallest change in value for a quote that allows two or four decimal places.
However recently, more and more brokers went beyond the standard four and two decimal places, offering quotes with five and three decimal places. This third or fifth decimal is commonly known as Pipette. A broker could quote NZD/USD as 0.78586. If that goes to 0.78587, the movement is termed as a 1 pipette rise.
How do we calculate the value of one pip?
The value of a pip differs from one currency to another. The difference comes from whether the U.S. dollar is the base currency or the counter currency. The next two examples will illustrate just that.
U.S. dollar as base currency
The price of USD/CAD is 1.1332. The smallest movement for a pip is thus 0.0001. To calculate the value of one pip, the formula is:
Pip Value = Smallest decimal move / Current exchange rate
= 0.0001 / 1.1332
= 0.000882
The value of 1 pip when the USD/CAD is at 1.1332 is USD 0.000882.
U.S. dollar as counter currency
The price of AUD/USD is 0.8613. The smallest movement for a pip is thus 0.0001. To calculate the value of one pip, the formula is:
Pip Value = Smallest decimal move / Current exchange rate
= 0.0001 / 0.08613
= 0.001161
Needless to say, this calculation will always be done for you automatically by every single broker you might trade with.
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Exactly what this guy says and is how you measure your trades
A pip, short for “percentage in point” or “price interest point,” represents a tiny measure of the change in a currency pair in the forex market. It can be measured in terms of the quote or in terms of the underlying currency.