What is the story of "1 pip"? | Forex Factory

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What is the story of "1 pip"?

  • #1
  • First Post: Jul 24, 2009 2:59pm Jul 24, 2009 2:59pm
Which is true?
(A) 1 pip = Point
(B) 1 pip = 0.0001
  • #2
  • Jul 24, 2009 3:20pm Jul 24, 2009 3:20pm
1 pip = 0.0001 (or 0.01 for yen pairs)

"Point" (in mql4) will either be addressing 0.0001 or 0.00001 (0.01 or 0.001) depending on the value of "Digits".

1 pip = 10 pipettes or 0.00010 (0.010) on 5/3-decimal MT4 platforms.
  • #3
  • Jul 24, 2009 7:20pm Jul 24, 2009 7:20pm
Right, I'll take ur statement 1 pip = 1 Point...

Assume somebody says they're looking for 45 pips profit... Does that mean its $45 profit with a 4-digit broker and $4.5 with a 5-digit broker?

Although it sounds too simple, I'm not sure why there is so much confusion around it...
  • #4
  • Jul 24, 2009 10:11pm Jul 24, 2009 10:11pm
45 pips is 45 pips. the extra digit on some brokers is a fractional pip.

you cannot say that 1 pip is 0.0001 because for yen pairs 1 pip is 0.01
  • #5
  • Last Post: Jul 25, 2009 1:51am Jul 25, 2009 1:51am
Quoting findmanu
Which is true?
(A) 1 pip = Point
(B) 1 pip = 0.0001
Common sense suggests to me that (B) is correct. One pip is 0.0001 (or 0.01 for JPY-pairs).

If you have a 50 pip stoploss, for example, it means 0.0050 (or 0.50 for JPY-pairs), regardless of the number of decimals in the broker quotes.

Would you change your SL/TP strategy just because the broker quotes have an extra decimal place? Of course not.
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