Wrap my head around

Beginner Questions
1

Right up 'til today, despite everything I am attempting to wrap my head around what a pip is. I think I have down that it’s a reference to the littlest measured value variance of a base match, however, what does that mean, truly? How do pips play into trading flow and choices? Also, I know on a fundamental level what ‘base sets’ are, yet same inquiry - what do you do with them? It is safe to say that you are all the while going long on one and shorting the other?

2

Hi,

It’s just a unit of measure. Personally I associate it with concepts like metres, or grams. It’s just a way to quantifiably measure a change in value (in this case, between two currencies).

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3

i like your writing i force my self to write like you but i cant :disappointed_relieved:, so wasted i got jealous ))
pips are nothing only measurement , you cant make money on pips alone but with your lot size , thats where pip get some meaning

4

On EURUSD a “Pip” is th 4th decimal place of the exchange rate so = 1/100 cent, a standard “lot” is $100,000 so a movement of 1 pip is equivalent to $10. A “Pipette”, is the fifth decimal place and is therefore $1 on a standard lot.

The smallest and fastest moving number on your screen is always the “Pipette” so although different instruments have different numbers of decimal places, the fastest moving will pretty much always be teh pipette, and although the standard lot “pip” is not always worth exactly $10 on other instruments, in round terms that is a pretty safe number to think in terms of.

YOU then decide what you want to risk / gain on one pip of movement and choose your own “Lot size” accordingly.

5

Pip is the very common term which is used in forex trading. Trader should have clear knowledge about pips otherwise they will not able to move forward in trading business. The value of two currencies of two different country through which unit they measured to express is called pip. Another important fact is pip always move with trading pairs. Every currency has its own value but it is important to calculate the value of pips for the particular trading pairs in order to complete a trade.

6

Valid point there EJ - Mostly I think it’s as I said - but wtf a pip is worth on the “Bitcoin” I have no idea for example !

7

Hi,

Here’s a link to an answer I already saw in this forum

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8

Thanks for that fernan. Yes its bitcoin/USD so it’s denominated in dollars and is the same $10 / Lot / Pip as tha others then of course - Thanks again :slight_smile: