I'm a rank newbie working my way through the training at babypips. The examples on the page about calculating pips (http://www.babypips.com/school/pips-and-pipettes.html) aren't making sense to me. I quote:
In the case of the first example, I tried .0001 / 1.5250 and I get 6.557377 (numbers continue). My calcs are a whopping 5 decimal points off. It's the same thing with the example of US dollars and Swiss Francs -- 5 decimal points off.
What's going on here? I did the math exactly as they're showing in their examples.
QuoteDislikedAs each currency has its own value, it is necessary to calculate the value of a pip for that particular currency. In the following examples, we will use quotes with 4 decimal places.
In currencies where the U.S. dollar is quoted first, the calculation would be as follows:
- USD/CHF at 1.5250
.0001 divided by exchange rate = pip value
.0001 / 1.5250 = 0.0000655- USD/CAD at 1.4890
.0001 divided by exchange rate = pip value
.0001 / 1.4890 = 0.00006715
What's going on here? I did the math exactly as they're showing in their examples.
