Forex VPS
Forex VPS
ForexFunction Logo

"Forex trading involves a high level of risk"

Forex VPS
forex crm provider
 Market Comments |  Technical Indicator Signals |  Cross Pair Rates |  Live Spread |  Live Charts |  Daily Pivot Points
What is a Pip & What is the value of a Pip? - Forex Function

What is a Pip & What is the value of a Pip?

Last Update: 17 December,2016
Print PDF

Currency Pair Price Quote Explaining The Pip and its Value

What is a Pip?

In forex trading, the smallest possible change of price in the currency pair price quote is called a “pip”. A pip is a standardized unit and the smallest unit of measurement in change of price quotes. The full form of pip is “Point in Percentage”. In simple language, it the single point unit to measure the price change, as how many pips did the currency pair advance or decline.

Example: in the image above you will see the price quote of 4 currency pairs. The above quoted eur/usd bid price is 1.30600. In this price quote, the 4th unit of price, i.e. 0.0001 are called a pip and the 5th unit of price i.e. 0.00001 are called a fractional pip, as so if the eur/usd price advances to 1.30610 then we will say that eur/usd increased 1 pip.

What is the value of a Pip?

The value of a single pip is different for all currencies, and it depends on various factors like what is the currency pair and what is the number of units you are trading i.e. Which lot, whether it is a standard lot (100,000 units) or a mini lot (10,000 units) or a micro lot (1,000 units)?

Example: the value of a pip for eur/usd currency pair is
Standard lot = 100,000 units x 0.0001 = $10
Mini lot = 10,000 units x 0.0001 = $1
Micro lot = 1,000 units x 0.0001 = $0.10

We do not have to worry for the value of the pip calculation as it is automatically calculated by the forex brokers, but, there is one thing, which we have to take care, and that is determining the lot size to trade as per the pip value, we will see how this is done in the lessons later.

Submit Your Comments:

 Forex Trading VPS


Windows 2008/2012 | Server Location Amsterdam, France, Canada | Low Latency From Brokers| Super Fast Trading Experience | All types of EA supported | 3 Days Money Back Guarantee

Plan NameBuy Link CPU RAM Disk BandWidth Price (Montly)Price (Quarterly)Price (Semi-Annually )Price (Annually) InstallationBackUpSetup Fee
Economy buy now2 Core 756MB 15GB 1TB $6.50/M$6.20/M$5.90/M $5.50/M MT4 Pre-InstalledYesFree
Standard buy now 2 Core 1GB 25GB 1.5TB $8.50/M$8.20/M$7.90/M $7.50/M MT4 Pre-InstalledYesFree
Premiumbuy now 2 Core 2GB 40GB 2TB $16/M$15.50/M$15/M$14.50/M MT4 Pre-InstalledYesFree
Advanced buy now4 Core 3GB 60GB 2.5TB $26/M$25/M$24/M $22/M MT4 Pre-InstalledYesFree
Professionalbuy now 4 Core 4GB 80GB 3TB $33/M $32/M$31/M$29/MMT4 Pre-InstalledYesFree
Business buy now 4 Core 6GB 100GB 4TB$46/M $45/M$44/M$42/MMT4 Pre-InstalledYesFree
Platinum buy now 4 Core 8GB 120GB 6TB $59/M $58/M$57/M$55/M MT4 Pre-InstalledYesFree
Diamond buy now 4 Core 12GB 180GB 8TB $89/M $87/M$85/M$81/MMT4 Pre-InstalledYesFree

***We accept Neteller, Skrill, MasterCard, Paypal, Payza, Perfect Money, Webmoney !