Am I Understanding How Pips Work Correctly? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Simple Trader not working correctly 2 replies

Understanding Multiple Timeframes and How They Work 3 replies

How to correctly scale up ones position? Long term trading 6 replies

Tip on displaying arrows correctly 5 replies

How To Correctly Identify The Trend 4 replies

Am I Understanding How Pips Work Correctly?

  • #1
  • First Post: Apr 27, 2013 2:03pm Apr 27, 2013 2:03pm
So lets say I open up a trade with 0.30 standard lot size...

If I buy EUR/USD at 1.30365 and the price goes up to 1.30395...which is 30 pips...would that mean that I would get $3 per pip ?

So...0.30 lots = 30,000 = $3/pip.

So a buy at 1.30365 on eur/usd that goes up 30 pips which would be 1.30395 would earn me $90 with 0.30 lot(s) ?

Am I getting this correctly ?
  • #2
  • Apr 27, 2013 2:07pm Apr 27, 2013 2:07pm
Quoting rxJano
So lets say I open up a trade with 0.30 standard lot size... If I buy EUR/USD at 1.30365 and the price goes up to 1.30395...which is 30 pips...would that mean that I would get $3 per pip ? So...0.30 lots = 30,000 = $3/pip. So a buy at 1.30365 on eur/usd that goes up 30 pips which would be 1.30395 would earn me $90 with 0.30 lot(s) ? Am I getting this correctly ?
No, it would be 3 pips, not 30 .
0.3 lots would give you 9$.

Note
Not all pairs equate 1 lot to $10 per pip.
Please Do Not PM Me With Coding Enquiries
  • #3
  • Apr 27, 2013 2:17pm Apr 27, 2013 2:17pm
Quoting Gumrai
{quote} No, it would be 3 pips, not 30 . 0.3 lots would give you 9$. Note Not all pairs equate 1 lot to $10 per pip.
where can i see what each pair equates to ? im a little bit confused because i used a pip calculator and EUR/USD shows me that its $3 per pip with 30,000 lot size.

http://www.babypips.com/tools/forex-...s/pipvalue.php
  • #4
  • Apr 27, 2013 2:37pm Apr 27, 2013 2:37pm
Quoting rxJano
{quote} where can i see what each pair equates to ? im a little bit confused because i used a pip calculator and EUR/USD shows me that its $3 per pip with 30,000 lot size. http://www.babypips.com/tools/forex-...s/pipvalue.php
Yes, that is correct. 0.3 lots on EU equates to $3 per pip.

Your mistake is thinking that your example is 30 pips profit, when it is only 3.

Quote
If I buy EUR/USD at 1.30365 and the price goes up to 1.30395...which is 30 pips.
It should be
"If I buy EUR/USD at 1.3036(5) and the price goes up to 1.3039(5)...which is 3 pips."

It can be a bit confusing until you get used to it, I guess
Some brokers are a little bit helpful as they may quote price as 1.30365, which is a good idea
The last digit is called a pipette
Please Do Not PM Me With Coding Enquiries
  • #5
  • Apr 27, 2013 3:15pm Apr 27, 2013 3:15pm
Quoting Gumrai
{quote} Yes, that is correct. 0.3 lots on EU equates to $3 per pip. Your mistake is thinking that your example is 30 pips profit, when it is only 3. {quote}It should be "If I buy EUR/USD at 1.3036(5) and the price goes up to 1.3039(5)...which is 3 pips." It can be a bit confusing until you get used to it, I guess Some brokers are a little bit helpful as they may quote price as 1.30365, which is a good idea The last digit is called a pipette
Ahhh. I see it now. Thanks bro ! I wasn't aware about the pipette.
  • #6
  • Apr 27, 2013 3:36pm Apr 27, 2013 3:36pm
I should have said that the 5th digit after the decimal point is the pipette.
You just have to learn what is a pip for every pair.
EURJPY will be 127.704
USDJPY will be 98.025

I guess that with most pairs if you look at the spread and it is more than 15, then you are counting in pipettes, not pips
Please Do Not PM Me With Coding Enquiries
  • #7
  • Apr 28, 2013 5:41am Apr 28, 2013 5:41am
Quoting rxJano
So lets say I open up a trade with 0.30 standard lot size... If I buy EUR/USD at 1.30365 and the price goes up to 1.30395...which is 30 pips...would that mean that I would get $3 per pip ? So...0.30 lots = 30,000 = $3/pip. So a buy at 1.30365 on eur/usd that goes up 30 pips which would be 1.30395 would earn me $90 with 0.30 lot(s) ? Am I getting this correctly ?
http://www.forexrazor.com/en-us/tool...alculator.aspx
  • #8
  • Last Post: Apr 28, 2013 7:15am Apr 28, 2013 7:15am
Quoting GDR3k
{quote} http://www.forexrazor.com/en-us/tool...alculator.aspx
I don't think that his problem was the calculator, but more with understanding the difference between a pip and a pipette
Please Do Not PM Me With Coding Enquiries
0 traders viewing now