No Result
View All Result
Markets
EUR/USD GBP/USD USD/JPY AUD/USD NZD/USD XAU/USD
Central Banks
FED ECB BoE BoC BoJ SNB RBA RBNZ
Brokers
Wire Transfer Visa/Mastercard Paypal Fasapay Skrill Bitcoin
FCA Cysec CFTC NFA FSA
Forex Guide
Beginners Basics Technicals Fundamentals
Education
Forex Articles Forex School Forex Terms
Forex Strategies
5 Minutes 15 Minutes 30 Minutes 1 Hours 4 Hours Daily
Resources
Indicators Forex Ebooks MT4 MT5
Trading Tools
Live Charts Economic Calendar Fibonacci Calc Pivot Points
Mira FX
  • Markets
  • Education
  • Central Banks
  • Resources
    • Ebooks
    • Indicators
      • MT4 Indicators
      • MT5 Indicators
  • Brokers
    • Deposit Bonuses
    • No-Deposit
    • Demo Contest
    • Live Contest
    • Brokers News
  • Tools
  • Login
  • Deposit Bonuses
  • No-Deposit Bonuses
  • Demo Contest
  • Live Contest
  • Brokers News
  • Brokers
Mira FX
  • Markets
  • Education
  • Central Banks
  • Resources
    • Ebooks
    • Indicators
      • MT4 Indicators
      • MT5 Indicators
  • Brokers
    • Deposit Bonuses
    • No-Deposit
    • Demo Contest
    • Live Contest
    • Brokers News
  • Tools
Mira FX
  • Markets
  • Education
  • Central Banks
  • Resources
  • Brokers
  • Tools
  Latest
Make Money in Forex by Avoiding These Psychological Risks May 24, 2022
Next
Prev

Price Interest Point (Pip)

Mira Team by Mira Team
January 11, 2021
in Forex Terms
Reading Time: 1 min read
ShareTweetShareSendShareSend

Definition – What does Price Interest Point (Pip) mean?

The price interest point (PIP) is a basic unit in forex trading that is used to measure the change in value in a currency pair. It is usually equivalent to 1/100th of 1%, but this depends on how many decimal places a currency pair is quoted to. Basically, a pip is always the smallest amount by which moves in a currency pair’s value can be measured

The price interest point is more commonly called a pip, after its acronym PIP.

ForexTerms explains Price Interest Point (Pip)

In general, a currency pair is quoted to four decimal places – for example USD/AUD = 0.9549. So, if a currency trader wants to trade 10,000 units of AUD, it will require $10,472.30 USD. This number is calculated as (1/0.9549)*10,000. If the currency pair increases one pip to 0.9550, the value of the position is now $10,471.20. That one pip is worth a difference of $1.30 in the value of the position. If the trader is using 50 times leverage on the trade, that pip is worth $75 ($1.30*50). A currency pip can easily move over 40 pips a day, meaning that the value of the position could swing over $3000 in value. Whether that is profit or loss, depends on which currency the trader is long and which currency he is short.

Although traders count pips while in the trade, the still express profits and losses in terms of percentages once trades are closed. This means that they might watch for a certain number of pips before closing a position, but they will log the trade in terms of percentage gain (or loss) in their trading log.

ⓘ Mira FX is not liable for any damage or loss, including but not limited to, any loss of investment, which may be based either directly orindirectly on the use of or reliance on such information. Before deciding whether or not to take part in foreign exchange or financial markets or any other type of financial instrument, please carefully consider your investment objectives, level of experience and risk appetite.

Related Posts

Flip and Go Forex Strategy

Flip and Go Forex Strategy

Susilo SM | MACD - M15, M30
Consumer Price Index CPI

The Consumer Price Index (CPI) Indicator and the Forex Market

Dwikun - Dec 9 | Fundamentals
How to Trade Ahead of the News

How to Trade Ahead of the News

FBS | Fundamentals
How Currencies are Traded in the FOREX Market

How Currencies are Traded in the FOREX Market

Yanuar TJ - Arpil 20 | Basic
CBOE Volatility Index (VIX) – Forex Traders

CBOE Volatility Index (VIX) – Forex Traders

Mira Team - August 7 | Fundamentals
Trade Balance Report – Forex Calendar

Trade Balance Report – Forex Calendar

Mira Team - July 31 | Fundamentals
Advertisement

Latest

Forex Psychological Risks

Make Money in Forex by Avoiding These Psychological Risks

JOANA N - MAY 24 | Psychology

Differences between the Foreign Exchange Market and Stock Market

DAVID G - May 23 | BASIC

Why Leverage is Important for Forex Traders?

Joana N - May 23 | Basic

How To Install Metatrader 5 Custom Indicators

MIRA TEAM - May 9 | Basic

Gross Domestic Product, First Quarter 2022

APR 28, 2022 | USD

The pound reacts to rising inflation like EM currency

Apr 13, 2022 | GBP/USD
Advertisement
  • About
  • Advertising
  • Disclaimer
  • Contact
  • Privacy Policy
  • Terms & Conditions
Risk Warning: All information on this website, including any opinions, articles, charts, prices, news, data, Buy/Sell signals, reviews, research and analysis is provided as general market commentary and does not constitute any investment advice. Mira FX is not liable for any damage or loss, including but not limited to, any loss of investment, which may be based either directly orindirectly on the use of or reliance on such information. Before deciding whether or not to take part in foreign exchange or financial markets or any other type of financial instrument, please carefully consider your investment objectives, level of experience and risk appetite. Do not invest more money than you can afford to lose. Note that the high level of leverage in forex trading may work against you as well as for you. Please seek advice of an independent financial advisor if you are not fully aware about the risks associated with foreign exchange trading. Forex trading on margin involves considerable exposure to high risk, and may not be suitable for all investors. Mira FX does not endorse any companies, products or services which are represented on Mira-FX.com The information on this website is subject to change without notice.
No Result
View All Result
  • About
  • Advertising
  • Central Banks
  • Contact
  • Disclaimer
  • Forex Brokers
    • Regulator
  • Index
    • Daily Forex Strategy
    • Forex Ebooks | Language: English
    • H1 Forex Strategy
    • H4 Forex Strategy
    • M15 Forex Strategy
    • M30 Forex Strategy
    • M5 Forex Strategy
  • Markets
    • EUR/JPY
  • Mira FX
  • Privacy Policy
  • Terms & Conditions
  • Tools
    • Economic Calendar
    • Fibonacci Retracement Calculator
    • Live Charts
    • Pivot Point Calculator

© 2022 Mira FX | Copying of materials is allowed only with the presence of an active link to a source page.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In