"Pip" stands for "percentage points" which scale is used to assess changes in the price of a currency pairs in the forex market. A percentage point or pip equivalent to one hundredth of a percent (0.0001) of a unit of currency.
All major currencies, except the Japanese yen, the currency has a unit that is equal to 1.0000. This is because their values are relatively similar to each other. For example, at the time of writing 1 Euro is worth 1.4274 U.S. dollar, and the pound is worth 1.5482 Canadian dollars.
So, if the GBP / USD rose from 1.5482 to 1.5488, you have to say that the price of the pair has climbed eight pips (0.0008). If EUR / USD is down 10 pips from 1.4274, then it would be worth 1.4264.
Japanese Yen currency is unique, although the low exchange rate, but countries including Japan country with a strong economy. Because the value of the Japanese Yen is very low when compared with other major currencies, ultimately measured in units of 100.00 instead of 1.0000. So, every time you see the currency pair involving Yen, will be disclosed to two decimal points instead of four decimal places.
Here is an example that is easy to understand, at the time of writing, the U.S. Dollar against the Japanese Yen is expressed like this: USD / JPY = 77.60. A pip the currency pair involving the yen is 0.01 rather than 0.0001. Because the fact that the yen is measured in units of 100 instead of 1, which basically means that moving the decimal point two places to the right. So if the USD / JPY moves up by 10 pips from 77.60, the pair will have a value of 77.70.
Similarly, a brief explanation of notion pips. And what-what are the background of the formation of a pip.
All major currencies, except the Japanese yen, the currency has a unit that is equal to 1.0000. This is because their values are relatively similar to each other. For example, at the time of writing 1 Euro is worth 1.4274 U.S. dollar, and the pound is worth 1.5482 Canadian dollars.
So, if the GBP / USD rose from 1.5482 to 1.5488, you have to say that the price of the pair has climbed eight pips (0.0008). If EUR / USD is down 10 pips from 1.4274, then it would be worth 1.4264.
Japanese Yen currency is unique, although the low exchange rate, but countries including Japan country with a strong economy. Because the value of the Japanese Yen is very low when compared with other major currencies, ultimately measured in units of 100.00 instead of 1.0000. So, every time you see the currency pair involving Yen, will be disclosed to two decimal points instead of four decimal places.
Here is an example that is easy to understand, at the time of writing, the U.S. Dollar against the Japanese Yen is expressed like this: USD / JPY = 77.60. A pip the currency pair involving the yen is 0.01 rather than 0.0001. Because the fact that the yen is measured in units of 100 instead of 1, which basically means that moving the decimal point two places to the right. So if the USD / JPY moves up by 10 pips from 77.60, the pair will have a value of 77.70.
Similarly, a brief explanation of notion pips. And what-what are the background of the formation of a pip.
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