[...] In Forex, you will hear the term "Pips" a lot. But what is a Pip? "Pip" is derived from "percentage in point". A Pip is the smallest unit of value that a currency pair can be valued at. To get an idea of what I am talking about, let’s look at Euros and US Dollars. Let’s say a Euro is worth 1.4694 US Dollars. So the EUR/USD is 1.4694. The "4" on the end is the smallest unit. In other words it is four ten-thousandths of a dollar. If you have 10,000 Euros you would have 14,694 US Dollars. In the case of Euro/USD, that "4" then is the smallest unit and that is where the Pip comes from. Let’s say the value of the US Dollar decreases relative to the Euro and it is now 1.4793 Dollars per Euro. In this case the Euro just gained almost 1 penny on the Dollar, meaning for every Euro you sell, you would receive about 1 more US cents. But the actual movement is under 1 cent, it is .0099. That means that the change was 99 pips. Since the last number is the smallest unit, we see a change of 99 from that. If the EUR/USD had gone to only 14,695, then the change would have been 1 pip. [...]
[...] In Forex, you will hear the term “Pips” a lot. But what is a Pip? “Pip” is derived from “percentage in point”. A Pip is the smallest unit of value that a currency pair can be valued at. To get an idea of what I am talking about, let’s look at Euros and US Dollars. Let’s say a Euro is worth 1.4694 US Dollars. So the EUR/USD is 1.4694. The “4″ on the end is the smallest unit. In other words it is four ten-thousandths of a dollar. If you have 10,000 Euros you would have 14,694 US Dollars. In the case of Euro/USD, that “4″ then is the smallest unit and that is where the Pip comes from. Let’s say the value of the US Dollar decreases relative to the Euro and it is now 1.4793 Dollars per Euro. In this case the Euro just gained almost 1 penny on the Dollar, meaning for every Euro you sell, you would receive about 1 more US cents. But the actual movement is under 1 cent, it is .0099. That means that the change was 99 pips. Since the last number is the smallest unit, we see a change of 99 from that. If the EUR/USD had gone to only 14,695, then the change would have been 1 pip. [...]
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Understanding Pips | Forex Trading Help on Fri, 6th Mar 2009 4:03 am
[...] In Forex, you will hear the term "Pips" a lot. But what is a Pip? "Pip" is derived from "percentage in point". A Pip is the smallest unit of value that a currency pair can be valued at. To get an idea of what I am talking about, let’s look at Euros and US Dollars. Let’s say a Euro is worth 1.4694 US Dollars. So the EUR/USD is 1.4694. The "4" on the end is the smallest unit. In other words it is four ten-thousandths of a dollar. If you have 10,000 Euros you would have 14,694 US Dollars. In the case of Euro/USD, that "4" then is the smallest unit and that is where the Pip comes from. Let’s say the value of the US Dollar decreases relative to the Euro and it is now 1.4793 Dollars per Euro. In this case the Euro just gained almost 1 penny on the Dollar, meaning for every Euro you sell, you would receive about 1 more US cents. But the actual movement is under 1 cent, it is .0099. That means that the change was 99 pips. Since the last number is the smallest unit, we see a change of 99 from that. If the EUR/USD had gone to only 14,695, then the change would have been 1 pip. [...]
Understanding Pips | America Forex Trading, Forex Training Forex , Forex broke , Online Forex money management , Forex money , Forex Technical Analysis , on Sun, 22nd Mar 2009 6:44 pm
[...] In Forex, you will hear the term “Pips” a lot. But what is a Pip? “Pip” is derived from “percentage in point”. A Pip is the smallest unit of value that a currency pair can be valued at. To get an idea of what I am talking about, let’s look at Euros and US Dollars. Let’s say a Euro is worth 1.4694 US Dollars. So the EUR/USD is 1.4694. The “4″ on the end is the smallest unit. In other words it is four ten-thousandths of a dollar. If you have 10,000 Euros you would have 14,694 US Dollars. In the case of Euro/USD, that “4″ then is the smallest unit and that is where the Pip comes from. Let’s say the value of the US Dollar decreases relative to the Euro and it is now 1.4793 Dollars per Euro. In this case the Euro just gained almost 1 penny on the Dollar, meaning for every Euro you sell, you would receive about 1 more US cents. But the actual movement is under 1 cent, it is .0099. That means that the change was 99 pips. Since the last number is the smallest unit, we see a change of 99 from that. If the EUR/USD had gone to only 14,695, then the change would have been 1 pip. [...]