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Understanding Pips in Forex Trading by Mayank Chauhan is a document available to read on EtoBox.
A pip is the smallest unit of change in a currency pair on the forex market. It represents a change of 0.0001 for currency pairs involving the US dollar, which equals 1/100th of 1% or one basis point. The value of a pip depends on the currency pair traded, size of the trade, and exchange rate. Calculating pip value uses the formula: Pip value = (pip in decimal places * trade value). For example, with a EUR/USD trade of 10,000 euros, a 1 pip change would be worth $1.66 based on the exchange rate. An increase
- Author
- Mayank Chauhan
- Language
- EN