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#1




Pip values
Hello,
I am very new, but I am a good study, so I hope to trade with actual money sometime in the Fall. In the meantime, I am reading up as much as possible. I will start demo trading sometime this summer. My question is in regards to pip value. For example: if USD/CHF has an ask price of 1.5250 each pip would be worth 0.0001 divided by 1.5250 times the lot size. For a standard $100000 lot, that's $6.55 per pip. For a mini $10000 lot, that's $0.66 per pip. Yet everyone is always talking about $10 per pip trades (or $1 per pip in mini lots). It seems to me that it is impossible to put a set value on a pip like that. What am I missing? Mojo 
#2




Re: Pip values
Hi
Yes you are right in your calculation of the pip value of USD/CHF (dollar/swiss). However, many traders talk about the EUR/USD as the main trading currency pair, in which the pip value on a lot (€100,000) is $10. This also applies to the GBP/USD currency pair. A pip value for a lot will in cases with 4 decimal places 100 of the quoted (i.e. the right hand currency in the quote) currency. With the yen, it is 10,000. Regards Steve
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#3




Re: Pip values
The following should resolve all uncertainties:
First of all you must understand currency quoting conventions and the differrence between the base currency and the terms currency. In the spot forex market (but not localized futures markets) the quoting conventions are: Base / terms: EUR/USD GBP/USD USD/CHF USD/JPY AUD/USD The following rules: EUR always base GBP always base except EURGBP Old colonial like AUD / NZD Always base except EUR / GBP USD always base except UER / GBP / Old colonials CHFJPY Pip values: To express the value in the terms currency multiply 1 pip with the lot value: EURUSD pip = 0.0001 X 100,000 = $10.00 EURUSD pip = 0.0001 X 10,000 = $1.00 USDCHF pip = 0.0001 X 100,000 = SFr 10.00 USDCHF pip = 0.0001 X 10,000 = SFr 1.00 To convert to the base currency divide by exchange rate: Say EURUSD exchange rate = 1.4750 = $10.00 / 1.4750 = EUR 6.78 Say USDCHF exchange rate = 1.1015 = $10.00 / 1.1015 = $9.08 JPY works same principle 2nd decimal. 
#4




Re: Pip values
ExcellentThank you! How cool that both experts have responded. I have signed up for the Bird Watching eletter. I have read the intorductory chapters and plan on buying the book soon. My plan is to get a deep understanding of pure technical analysis, daydream, and then smash it all into perspective with your book.
I'm taking this slow. I don't think I have any major misconceptions. Of course I go throught the daydream of making a mint, nut I'm doing my best to keep myself grounded. A 10% return on my initial $2000 per month is as lofty a goal as I can imagine. That's enough to retire well in 10 years! Thanks again guys Mojo 
#6




Re: Pip values
It is 500 pips. A pip is a pip is a pip, but for Yen, it is to two decimal points. Why? because the big figure is around 3 figures, (93 at the time of writing, but historically 100+). Therefore, the value of a pip is:
Lot size (100000) x .01 = JPY 1000 = $10.72 Now, as an exercise, what is the pip value of the Zimbabwe Dollar? (the rate is 1 US Dollar = 4,087,579 Zimbabwe Dollar according to Oanda)
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#9




Re: Pip values
Thanks for all the explanations. It was very useful. And i'm joining to the question about xauusd.

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