What is a pip?

In the context of a 5 figure price chart what is a pip, is it the digit at the 5th decimal place?

I think 0.0001 is a pip, and 0.00001 is a point.

However there seems to be lot of misusing those words, some people think pip is always the smallest movement, regardless if the broker uses 4 or 5 digits. Yeah, its a mess :D

babyschool.com you know that ?

the 5th decimal place is a tick, 1/10 of a pip, which is the fourth decimal place

0.0001 is a pip , 0.00001 is a pipette , 1 pip = 10 pipettes

some times, 0.01 is a pip, like usdjpy :)

As I said - its a mess! I guess the 5th decimal is so new thing the forex community hasn't settled the 'official' word yet..

Hello, I think you really have to be familiarized with the basic term of Forex world. You can check this one if you want: https://itrader-commodities.com/forex-glossary/ it helped me a lot when I was still a beginner.

Pip refers to point in percentage. However more simply, a pip is what we in Forex would check a point for computing P&L.

If you are trading in mini (i.e. 10,000 units of currency), one pip refers to the one unit of currency in which the account is denominated. If the account is denominate in US dollars, then each pip (depending on currency pair) is value of about $1.

In all the involving Yen, a pip is (1/100)th place i.e. two place on the right of the decimal. However, in all the other currencies, a pip is (1/10000)th place i.e. four place on the right of the decimal.

phebas posted:
In the context of a 5 figure price chart what is a pip, is it the digit at the 5th decimal place?

@phebas
Some time ago where there were 4 digits only pip was change of 1.
So e.g. EURUSD 1.3324 to 1.3325. Pipetes was cahnge of 1/10 of pip.

Nowadays when there are 5 digits on normal brokers (except shitty Instaforex)
the pip is often understand as change of one so
1.07100 to 1.07101

😉

rob559 posted:
babyschool.com you know that ?

good date. 😀

You will definitely find the answer here - https://www.babypips.com/ . Also a lot more useful information. 😉

A pip is the least possible change in the value of a currency pair. If for example the EUR / USD pair moves from 1.3150 to 1.3151, that is 1 PIP. A pip is the last decimal in the quote. Through the pips you will calculate the gains and losses.

Maybe a pip looks like a very small number but the winnings should be calculated in batch. The gains are seen more when the dollar is the base currency.

mlfrx posted:
Maybe a pip looks like a very small number but the winnings should be calculated in batch. The gains are seen more when the dollar is the base currency.

Of course, to pass the amount of pips to money won or lost is necessary to know the volume of the operation, that is, the number of lots with which the purchase or sale has been made in a currency pair.

mlfrx posted:


😉

Thank you for contributing this video.
Very good. 😁

mlfrx posted:


😉

Thanks for sharing. The video is useful 😄

Pips or point in percentage is the standardized unit of measurement to explain the change in value between two currencies. Pip is the smallest change an exchange rate can make. This uniform unit helps to protect investors’ from heavy losses. For most of the major currencies the value of pip is given by the 4th decimal place of the quotation. For example for EUR/USD, if the value moves from 1.1151 to 1.1152 then that 0.0001 rise in USD relative to Euro is “1 PIP”. But yen based currencies are exceptions and are displayed to only two decimal places. Example: if USD/JPY moves from 101.76 to 101.78, then this quote has 2 pip spread between the bid and ask price.
Also some brokers now offer fractional pips or popularly known as pipettes to provide the investor an additional digit of precision and transparency on the major currency pairs. For example if AUD/USD moves from 0.75840 to 0.75842, then the 0.00002 rise in USD is equal to 2 pipettes.