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1. Shard Calculation

Query:

Response:

Calculated Shard: 145 (from laksa025)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa145.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.xlence.com/en/lessons/lesson-12-an-introduction-to-pips-in-forex-trading/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.xlence.com/en/lessons/lesson-12-an-introduction-to-pips-in-forex-trading/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.xlence.com\/en\/lessons\/lesson-12-an-introduction-to-pips-in-forex-trading\/","crawl_time":1776428380,"first_indexed_time":1729843875,"http_code":200,"src_unparsed":"com,xlence!www,\/en\/lessons\/lesson-12-an-introduction-to-pips-in-forex-trading\/ s443","src_root_hash":"2641180421633449745","history_drop_reason":null,"meta_title":"Pips in Forex Trading Explained | Lesson 12","meta_descriptions":["Lesson 12 explains pips in forex trading, how pip values are calculated, and why they matter for profits and losses."],"attrs_boilerpipe_text":"An Introduction to Pips in Forex Trading\nIn this lesson, we will explore how changes in the value of a trading instrument are measured.\nUnderstanding pips in forex trading\nIn forex pairs, a pip is the smallest amount of change in a currency pair. A pip measures the\nmovement in exchange rates. It represents one-hundredth of 1% (1\/100 x .01) and is placed\nin the fourth decimal place (0.0001).\nFor example, if EUR\/USD is priced at 1.1110 today and increases to 1.1121 tomorrow, the pair\nhas moved up by 11 pips.\nJapanese yen\nJapanese yen (JPY) pairs are an exception to the four decimal place rule as they are quoted\nwith two decimal places. If you’re trading the EURUSD, a pip is worth 0.0001, while with the\nUSD\/JPY one pip equals 0.01.\nFractional pips or pipettes\nFractional pips, or pipettes, are units of price movement in forex trading. A pipette is a fraction\nof a pip, equal to one tenth of a pip and is placed in the fifth decimal place in currency pairs.\nFractional pips give more accuracy when calculating profits or losses.\nMonetary value of a pip\nA pip also has a monetary value, which depends on three factors: the currency pair, the\nexchange rate, and the size of the trade.\nExample\nIf you trade one lot in EUR\/USD, a change of one pip equals $10. For instance, if you enter a\nlong position in EUR\/USD at 1.1100 and it moves up to 1.1200 the pair has moved upwards\nby 100 pips – you would have gained $1,000. This is because your position size was €100,000\nand the exchange rate increased by 0.0100 (or 100 pips). Therefore, your profit is equal to the\nposition size multiplied by the change in the exchange rate:\n100,0000*0.0100=$1,000.\n• Your profit is $1,000\n• Each pip of the EUR\/USD movement is $10.\nCalculating pip value\nTo express this as an equation:\nPip value = Pip size * Position Size.\nFor each pip of one lot of EUR\/USD:\n€100,000*0.0001 = $10\nTo convert the pip value back to the base currency, divide the pip value by the current\nexchange rate:\nPip value = (Pip size * Position size) \/ (Ex. rate))\nFor example, if your account is in GBP and you want to work out the pip value in GBP, convert\nthe dollar pip value by using the GBP\/USD rate. So, for 1 lot:\n$10 \/ (GBP\/USD)\nUse of pips\nPips apply only in the FX market. The change in the value of stocks, gold and oil is typically\nmeasured in dollars and cents, reflecting the monetary value of each unit of the asset.\nHowever, the change in value of indexes, especially for shares, is measured in ticks.\nIn the next lesson, we will discuss the various types of orders that traders can use to start\ntrading.","attrs_markdown":"[Skip to content](https:\/\/www.xlence.com\/en\/lessons\/lesson-12-an-introduction-to-pips-in-forex-trading\/#content)\n\n[![](https:\/\/www.xlence.com\/wp-content\/uploads\/2024\/06\/xlence-logo.svg)](https:\/\/www.xlence.com\/en\/)\n\n- [Markets](https:\/\/www.xlence.com\/en\/markets\/)\n  \n  Close Markets\n  \n  Open Markets\n  [![](https:\/\/www.xlence.com\/wp-content\/uploads\/2024\/06\/FX-Pairs-1.svg) Forex Buy and sell CFDs in the most liquid market in the world.](https:\/\/www.xlence.com\/en\/markets\/forex\/)\n  \n  [![Elegant diamond logo featuring gold and black hues, representing future opportunities.](https:\/\/www.xlence.com\/wp-content\/uploads\/2024\/06\/Commodities.svg) Commodities Diversify your portfolio by trading oil and coffee CFDs.](https:\/\/www.xlence.com\/en\/markets\/commodities\/)\n  \n  [![Four solid blocks in gold and dark tones with a dotted-outline block, symbolizing metals trading and the variety of assets available in the market.](https:\/\/www.xlence.com\/wp-content\/uploads\/2024\/08\/Metals.svg) Metals Trade the most popular metals including gold and silver CFDs.](https:\/\/www.xlence.com\/en\/markets\/metals\/)\n  \n  [![](https:\/\/www.xlence.com\/wp-content\/uploads\/2024\/06\/Futures.svg) Futures Trade a range of commodity, index and energy futures with transparent conditions.](https:\/\/www.xlence.com\/en\/markets\/futures\/)\n  \n  [![](https:\/\/www.xlence.com\/wp-content\/uploads\/2024\/06\/Indices-1.svg) Indices Explore opportunities across different sectors by trading the Dow Jones, S\\&P 500 or Nasdaq 100.](https:\/\/www.xlence.com\/en\/markets\/indices\/)\n  \n  [![](https:\/\/www.xlence.com\/wp-content\/uploads\/2024\/06\/Shares-1.svg) Shares Love big brands? Trade Tesla, Amazon or Netflix with competitive prices.](https:\/\/www.xlence.com\/en\/markets\/shares\/)\n- [Trading](https:\/\/www.xlence.com\/en\/trading\/)\n  \n  Close Trading\n  \n  Open Trading\n  - [Account Types](https:\/\/www.xlence.com\/en\/trading\/account-types\/)\n  - [Spreads](https:\/\/www.xlence.com\/en\/trading\/spreads\/)\n  - [Swap Free](https:\/\/www.xlence.com\/en\/trading\/swap-free\/)\n- [Platforms](https:\/\/www.xlence.com\/en\/platforms\/)\n  \n  Close Platforms\n  \n  Open Platforms\n  ## MetaTrader5\n  ## MetaTrader4\n  ## [TradeCopier](https:\/\/www.xlence.com\/platforms\/tradecopier\/)\n  \n  [![A gold-toned circular graphic with a large Windows icon in the center, representing the Windows trading in a clean and modern visual style.](https:\/\/www.xlence.com\/wp-content\/uploads\/2024\/06\/windows.svg) MT5 for Windows](https:\/\/www.xlence.com\/en\/platforms\/metatrader-5\/mt5-for-windows\/)\n  \n  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Calendar](https:\/\/www.xlence.com\/en\/trading-central\/economic-calendar\/)\n  - [Alpha Generation](https:\/\/www.xlence.com\/en\/trading-central\/alpha-generation\/)\n  - [Technical Views](https:\/\/www.xlence.com\/en\/trading-central\/technical-views\/)\n- [Xlence](https:\/\/www.xlence.com\/en\/lessons\/lesson-12-an-introduction-to-pips-in-forex-trading\/)\n  - [About Us](https:\/\/www.xlence.com\/en\/about-us\/)\n  - [Why us?](https:\/\/www.xlence.com\/en\/why-us\/)\n  - [Events](https:\/\/www.xlence.com\/en\/xlence-events\/)\n  - [Contact us](https:\/\/www.xlence.com\/en\/contact-us\/)\n  - [Legal Documents](https:\/\/www.xlence.com\/en\/legal-documents\/)\n  - [Awards](https:\/\/www.xlence.com\/en\/awards\/)\n- [News & Analysis](https:\/\/www.xlence.com\/en\/news-analysis\/)\n  - [Xlence Narrative podcasts](https:\/\/www.xlence.com\/en\/xlence-narrative-podcasts\/)\n- [Education](https:\/\/www.xlence.com\/en\/education\/)\n  - [Xlence Talks](https:\/\/www.xlence.com\/en\/xlence-talks\/)\n- [Blog](https:\/\/www.xlence.com\/en\/blog\/)\n\nIntroduction to Forex\n\nStart by exploring the basics of trading and how it has become accessible to almost anyone with internet access. Learn about trade execution, calculating profit and loss, managing spread and leverage, and how currency pairs are represented.\n\n- [Lesson 1: Introduction to the Forex Market](https:\/\/www.xlence.com\/en\/lessons\/lesson-1-introduction-to-the-forex-market\/)\n- [Lesson 2: Who Participates in the Forex Market?](https:\/\/www.xlence.com\/en\/lessons\/who-participates-in-the-forex-market)\n- [Lesson 3: An Overview of the Forex Market](https:\/\/www.xlence.com\/en\/lessons\/lesson-3-an-overview-of-the-forex-market\/)\n- [Lesson 4: The Most Popular Currencies](https:\/\/www.xlence.com\/en\/lessons\/lesson-4-the-most-popular-currencies\/)\n- [Lesson 5: Currency Exchange Rates](https:\/\/www.xlence.com\/en\/lessons\/lesson-5-currency-exchange-rates\/)\n- [Lesson 6: Forex Fundamentals - A Beginner's Guide](https:\/\/www.xlence.com\/en\/lessons\/lesson-6-forex-fundamentals-a-beginners-guide\/)\n- [Lesson 7: Major, Minor, and Exotic Currency Pairs](https:\/\/www.xlence.com\/en\/lessons\/lesson-7-major-minor-and-exotic-currency-pairs\/)\n- [Lesson 8: Forex Before and After 1996](https:\/\/www.xlence.com\/en\/lessons\/lesson-8-forex-before-and-after-1996\/)\n- [Lesson 9: Speculating with Contracts for Difference](https:\/\/www.xlence.com\/en\/lessons\/lesson-9-speculating-with-contracts-for-difference)\n- [Lesson 10: The Role of Leverage in Forex Trading](https:\/\/www.xlence.com\/en\/lessons\/lesson-10-the-role-of-leverage-in-forex-trading)\n- [Lesson 11: Types of Lots in Forex](https:\/\/www.xlence.com\/en\/lessons\/lesson-11-types-of-lots-in-forex\/)\n- [Lesson 12: An Introduction to Pips in Forex Trading](https:\/\/www.xlence.com\/en\/lessons\/lesson-12-an-introduction-to-pips-in-forex-trading\/)\n- [Lesson 13: Market vs Pending Orders](https:\/\/www.xlence.com\/en\/lessons\/lesson-13-market-vs-pending-orders\/)\n- [Lesson 14: The Role of Pending Orders in Forex Trading](https:\/\/www.xlence.com\/en\/lessons\/lesson-14-the-role-of-pending-orders-in-forex-trading\/)\n- [Lesson 15: Understanding Bid, Ask, Spread, and Swap in Forex Trading](https:\/\/www.xlence.com\/en\/lessons\/lesson-15-understanding-bid-ask-spread-and-swap-in-forex-trading\/)\n- [Lesson 16: Essential Forex Terminology](https:\/\/www.xlence.com\/en\/lessons\/lesson-16-essential-forex-terminology\/)\n\nFundamental Analysis\n\nDiscover how economic news and fundamental factors impact the value of an asset, giving you a deeper understanding of market dynamics. Learn how the supply and demand of an asset relate to the corresponding market positions one should take in anticipation of these events.\n\n- [Lesson 17: Fundamental Analysis Understanding Supply & Demand in Forex Trading](https:\/\/www.xlence.com\/en\/lessons\/lesson-17-fundamental-analysis-understanding-supply-demand-in-forex-trading\/)\n- [Lesson 18: Exploring Exchange Rate Influences Growth, Trade Balance & Natural Resources](https:\/\/www.xlence.com\/en\/lessons\/exploring-exchange-rate-influences-growth-trade-balance-natural-resources-lesson-18\/)\n- [Lesson 19: The Interplay of Monetary Policy, Inflation & Exchange Rates](https:\/\/www.xlence.com\/en\/lessons\/the-interplay-of-monetary-policy-inflation-exchange-rates-lesson-19\/)\n- [Lesson 20: Fiscal Policy Basics and Interaction with Monetary Policy](https:\/\/www.xlence.com\/en\/lessons\/fiscal-policy-basics-and-interaction-with-monetary-policy-lesson-20\/)\n- [Lesson 21:Understanding Expectations Theory The Market's Response to Anticipated Changes](https:\/\/www.xlence.com\/en\/lessons\/understanding-expectations-theory-the-markets-response-to-anticipated-changes-lesson-21\/)\n- [Lesson 22:Popular Macroeconomic Indicators](https:\/\/www.xlence.com\/en\/lessons\/popular-macroeconomic-indicators-lesson-22\/)\n- [Lesson 23:Tracking Inflation Key Indicators and Price Measurement Strategies](https:\/\/www.xlence.com\/en\/lessons\/tracking-inflation-key-indicators-and-price-measurement-strategies-lesson-23\/)\n- [Lesson 24:Key Employment Indicators Understanding Labour Market Health](https:\/\/www.xlence.com\/en\/lessons\/key-employment-indicators-understanding-labour-market-health-lesson-24\/)\n- [Lesson 25:Understanding Consumption Business Sentiment Metrics](https:\/\/www.xlence.com\/en\/lessons\/understanding-consumption-business-sentiment-metrics-lesson-25\/)\n- [Lesson 26:Exploring Volatitlity Top Economic Indicators Worth Watching](https:\/\/www.xlence.com\/en\/lessons\/exploring-volatitlity-top-economic-indicators-worth-watching-lesson-26\/)\n- [Lesson 27:Understanding Market Jargon Key Currency Nicknames](https:\/\/www.xlence.com\/en\/lessons\/understanding-market-jargon-key-currency-nicknames-lesson-27\/)\n\nTechnical Analysis\n\nTechnical analysis involves observing the historical price patterns of an asset and using this data to predict where the next movement will occur. Gain the skills required to identify price patterns – notably through Charting analysis using graphical tools and Mechanical Analysis using technical indicators.\n\n- [Lesson 28: Introduction to Technical Analysis](https:\/\/www.xlence.com\/en\/lessons\/introduction-to-technical-analysis-lesson-28\/)\n- [Lesson 29: Dow Theory Explained](https:\/\/www.xlence.com\/en\/lessons\/dow-theory-explained-lesson-29\/)\n- [Lesson 30: 3 Types of Technical Charts](https:\/\/www.xlence.com\/en\/lessons\/3-types-of-technical-charts-lesson-30\/)\n- [Lesson 31: Candlestick Timeframes](https:\/\/www.xlence.com\/en\/lessons\/candlestick-timeframes-lesson-31\/)\n- [Lesson 32: Candlestick Patterns and their Meaning](https:\/\/www.xlence.com\/en\/lessons\/candlestick-patterns-and-their-meaning-lesson-32\/)\n- [Lesson 33: Identifying Support and Resistance Levels](https:\/\/www.xlence.com\/en\/lessons\/identifying-support-and-resistance-levels-lesson-33\/)\n- [Lesson 34: Uptrend, Downtrend and Sideways Trend](https:\/\/www.xlence.com\/en\/lessons\/uptrend-downtrend-and-sideways-trend-lesson-34\/)\n- [Lesson 35: Identifying Channels](https:\/\/www.xlence.com\/en\/lessons\/identifying-channels-lesson-35\/)\n- [Lesson 36: What are Fibonacci Retracements](https:\/\/www.xlence.com\/en\/lessons\/what-are-fibonacci-retracements-lesson-36\/)\n- [Lesson 37: Calculating Pivot Points](https:\/\/www.xlence.com\/en\/lessons\/calculating-pivot-points-lesson-37\/)\n- [Lesson 38: The Head and Shoulders Pattern](https:\/\/www.xlence.com\/en\/lessons\/the-head-and-shoulders-pattern-lesson-38\/)\n- [Lesson 39: The Importance of the Cup and Handle Formation](https:\/\/www.xlence.com\/en\/lessons\/the-importance-of-the-cup-and-handle-formation-lesson-39\/)\n- [Lesson 40: The Double Top and Bottom Pattern](https:\/\/www.xlence.com\/en\/lessons\/the-double-top-and-bottom-pattern-lesson-40\/)\n- [Lesson 41: The Falling and Rising Wedge Pattern](https:\/\/www.xlence.com\/en\/lessons\/the-falling-and-rising-wedge-pattern-lesson-41\/)\n- [Lesson 42: Ascending, Descending and Symmetrical Triangles](https:\/\/www.xlence.com\/en\/lessons\/ascending-descending-and-symmetrical-triangles-lesson-42\/)\n- [Lesson 43: What Are Flag and Pennant Chart Patterns](https:\/\/www.xlence.com\/en\/lessons\/what-are-flag-and-pennant-chart-patterns-lesson-43\/)\n- [Lesson 44: Characteristics of the Island Reversal Pattern](https:\/\/www.xlence.com\/en\/lessons\/characteristics-of-the-island-reversal-pattern-lesson-44\/)\n- [Lesson 45: The Different Gaps in Technical Analysis](https:\/\/www.xlence.com\/en\/lessons\/the-different-gaps-in-technical-analysis-lesson-45\/)\n- [Lesson 46: What are MAs](https:\/\/www.xlence.com\/en\/lessons\/what-are-mas-lesson-46\/)\n- [Lesson 47: How to Read Bollinger Bands](https:\/\/www.xlence.com\/en\/lessons\/how-to-read-bollinger-bands-lesson-47\/)\n- [Lesson 48: What is the Stochastic Oscillator](https:\/\/www.xlence.com\/en\/lessons\/what-is-the-stochastic-oscillator-lesson-48\/)\n- [Lesson 49: What is the RSI](https:\/\/www.xlence.com\/en\/lessons\/what-is-the-rsi-lesson-49\/)\n- [Lesson 50: What is the MACD](https:\/\/www.xlence.com\/en\/lessons\/what-is-the-macd-lesson-50\/)\n\nTrading Strategies\n\nEmploying fundamental and technical analysis is only one part of a longer-term strategy. Widen your expertise as you learn to optimise your risk and money management requirements.\n\n- [Lesson 51: A brief look at the News Trading strategy](https:\/\/www.xlence.com\/en\/lessons\/a-brief-look-at-the-news-trading-strategy-lesson-51\/)\n- [Lesson 52: Understanding Day Trading Key Characteristics Features](https:\/\/www.xlence.com\/en\/lessons\/understanding-day-trading-key-characteristics-features-lesson-52\/)\n- [Lesson 53: A guide to Momentum Trading Leveraging Market Trends Technical Indicators](https:\/\/www.xlence.com\/en\/lessons\/a-guide-to-momentum-trading-leveraging-market-trends-technical-indicators-lesson-53\/)\n- [Lesson 54: What is hedging in trading Strategies, benefits & drawbacks](https:\/\/www.xlence.com\/en\/lessons\/what-is-hedging-in-trading-strategies-benefits-drawbacks-lesson-54\/)\n- [Lesson 55: What you need to know about Scalping](https:\/\/www.xlence.com\/en\/lessons\/what-you-need-to-know-about-scalping-lesson-55\/)\n- [Lesson 56: Using the Swing Trading Strategy Indicators & Key Features](https:\/\/www.xlence.com\/en\/lessons\/using-the-swing-trading-strategy-indicators-key-features-lesson-56\/)\n- [Lesson 57: A brief analysis of the Trend Trading Strategy Strategies for Long-Term Market Success](https:\/\/www.xlence.com\/en\/lessons\/a-brief-analysis-of-the-trend-trading-strategy-strategies-for-long-term-market-success-lesson-57\/)\n- [Lesson 58: Building a robust trading plan](https:\/\/www.xlence.com\/en\/lessons\/building-a-robust-trading-plan-lesson-58\/)\n- [Lesson 59: The impact of trading psychology](https:\/\/www.xlence.com\/en\/lessons\/the-impact-of-trading-psychology-lesson-59\/)\n\n## Select Lesson\n# Lesson 12- An Introduction to Pips in Forex Trading\n## ***An Introduction to Pips in Forex Trading***\nIn this lesson, we will explore how changes in the value of a trading instrument are measured.\n\n### **Understanding pips in forex trading**\nIn forex pairs, a pip is the smallest amount of change in a currency pair. A pip measures the  \nmovement in exchange rates. It represents one-hundredth of 1% (1\/100 x .01) and is placed  \nin the fourth decimal place (0.0001).\n\nFor example, if EUR\/USD is priced at 1.1110 today and increases to 1.1121 tomorrow, the pair  \nhas moved up by 11 pips.\n\n### **Japanese yen**\nJapanese yen (JPY) pairs are an exception to the four decimal place rule as they are quoted  \nwith two decimal places. If you’re trading the EURUSD, a pip is worth 0.0001, while with the  \nUSD\/JPY one pip equals 0.01.\n\n### **Fractional pips or pipettes**\nFractional pips, or pipettes, are units of price movement in forex trading. A pipette is a fraction  \nof a pip, equal to one tenth of a pip and is placed in the fifth decimal place in currency pairs.  \nFractional pips give more accuracy when calculating profits or losses.\n\n### **Monetary value of a pip**\nA pip also has a monetary value, which depends on three factors: the currency pair, the  \nexchange rate, and the size of the trade.\n\n## **Example**\nIf you trade one lot in EUR\/USD, a change of one pip equals \\$10. For instance, if you enter a  \nlong position in EUR\/USD at 1.1100 and it moves up to 1.1200 the pair has moved upwards  \nby 100 pips – you would have gained \\$1,000. This is because your position size was €100,000  \nand the exchange rate increased by 0.0100 (or 100 pips). Therefore, your profit is equal to the  \nposition size multiplied by the change in the exchange rate:\n\n100,0000\\*0.0100=\\$1,000.\n\n• Your profit is \\$1,000  \n • Each pip of the EUR\/USD movement is \\$10.\n\n### **Calculating pip value**\nTo express this as an equation:\n\nPip value = Pip size \\* Position Size.\n\nFor each pip of one lot of EUR\/USD:\n\n€100,000\\*0.0001 = \\$10\n\nTo convert the pip value back to the base currency, divide the pip value by the current  \nexchange rate:\n\nPip value = (Pip size \\* Position size) \/ (Ex. rate))\n\nFor example, if your account is in GBP and you want to work out the pip value in GBP, convert  \nthe dollar pip value by using the GBP\/USD rate. So, for 1 lot:\n\n\\$10 \/ (GBP\/USD)\n\n## **Use of pips**\nPips apply only in the FX market. The change in the value of stocks, gold and oil is typically  \nmeasured in dollars and cents, reflecting the monetary value of each unit of the asset.  \nHowever, the change in value of indexes, especially for shares, is measured in ticks.\n\nIn the next lesson, we will discuss the various types of orders that traders can use to start  \ntrading.\n\n[Next lesson](https:\/\/www.xlence.com\/en\/lessons\/lesson-12-an-introduction-to-pips-in-forex-trading\/)\n\n## Have any questions?\n[Get in touch with us\\!](https:\/\/www.xlence.com\/contact-us)\n\n##### [Markets](https:\/\/www.xlence.com\/en\/markets\/)\n- [Forex](https:\/\/www.xlence.com\/en\/markets\/forex\/)\n- [Metals](https:\/\/www.xlence.com\/en\/markets\/metals\/)\n- [Indices](https:\/\/www.xlence.com\/en\/markets\/indices\/)\n- [Commodities](https:\/\/www.xlence.com\/en\/markets\/commodities\/)\n- [Futures](https:\/\/www.xlence.com\/en\/markets\/futures\/)\n- [Shares](https:\/\/www.xlence.com\/en\/markets\/shares\/)\n\n- [Forex](https:\/\/www.xlence.com\/en\/markets\/forex\/)\n- [Metals](https:\/\/www.xlence.com\/en\/markets\/metals\/)\n- [Indices](https:\/\/www.xlence.com\/en\/markets\/indices\/)\n- [Commodities](https:\/\/www.xlence.com\/en\/markets\/commodities\/)\n- [Futures](https:\/\/www.xlence.com\/en\/markets\/futures\/)\n- [Shares](https:\/\/www.xlence.com\/en\/markets\/shares\/)\n\n##### [Trading](https:\/\/www.xlence.com\/en\/trading\/)\n- [Account&#2; Types](https:\/\/www.xlence.com\/en\/trading\/account-types\/)\n- [Spreads](https:\/\/www.xlence.com\/en\/trading\/spreads\/)\n- [Swap Free](https:\/\/www.xlence.com\/en\/trading\/swap-free\/)\n\n- [Account&#2; Types](https:\/\/www.xlence.com\/en\/trading\/account-types\/)\n- [Spreads](https:\/\/www.xlence.com\/en\/trading\/spreads\/)\n- [Swap Free](https:\/\/www.xlence.com\/en\/trading\/swap-free\/)\n\n##### [Platforms](https:\/\/www.xlence.com\/en\/platforms\/)\n- [MetaTrader 5](https:\/\/www.xlence.com\/en\/platforms\/metatrader-5\/)\n- [MetaTrader 4](https:\/\/www.xlence.com\/en\/platforms\/metatrader-4\/)\n- [TradeCopier](https:\/\/www.xlence.com\/en\/platforms\/tradecopier\/)\n\n- [MetaTrader 5](https:\/\/www.xlence.com\/en\/platforms\/metatrader-5\/)\n- [MetaTrader 4](https:\/\/www.xlence.com\/en\/platforms\/metatrader-4\/)\n- [TradeCopier](https:\/\/www.xlence.com\/en\/platforms\/tradecopier\/)\n\n##### Tools\n- [Economic Calendar](https:\/\/www.xlence.com\/en\/trading-central\/economic-calendar\/)\n- [Featured Ideas](https:\/\/www.xlence.com\/en\/trading-central\/featured-ideas\/)\n- [Market Buzz](https:\/\/www.xlence.com\/en\/trading-central\/market-buzz\/)\n- [Alpha Generation](https:\/\/www.xlence.com\/en\/trading-central\/alpha-generation\/)\n- [Technical Views](https:\/\/www.xlence.com\/en\/trading-central\/technical-views\/)\n\n- [Economic Calendar](https:\/\/www.xlence.com\/en\/trading-central\/economic-calendar\/)\n- [Featured Ideas](https:\/\/www.xlence.com\/en\/trading-central\/featured-ideas\/)\n- [Market Buzz](https:\/\/www.xlence.com\/en\/trading-central\/market-buzz\/)\n- [Alpha Generation](https:\/\/www.xlence.com\/en\/trading-central\/alpha-generation\/)\n- [Technical Views](https:\/\/www.xlence.com\/en\/trading-central\/technical-views\/)\n\n##### Xlence\n- [About Us](https:\/\/www.xlence.com\/en\/about-us\/)\n- [Contact Us](https:\/\/www.xlence.com\/en\/contact-us\/)\n- [Events](https:\/\/www.xlence.com\/en\/xlence-events\/)\n- [Legal Documents](https:\/\/www.xlence.com\/en\/legal-documents\/)\n- [FAQ](https:\/\/www.xlence.com\/en\/faq\/)\n- [Why us?](https:\/\/www.xlence.com\/en\/why-us\/)\n- [Broker](https:\/\/www.xlence.com\/en\/broker\/)\n- [Awards](https:\/\/www.xlence.com\/en\/awards\/)\n\n- [About Us](https:\/\/www.xlence.com\/en\/about-us\/)\n- [Contact Us](https:\/\/www.xlence.com\/en\/contact-us\/)\n- [Events](https:\/\/www.xlence.com\/en\/xlence-events\/)\n- [Legal Documents](https:\/\/www.xlence.com\/en\/legal-documents\/)\n- [FAQ](https:\/\/www.xlence.com\/en\/faq\/)\n- [Why us?](https:\/\/www.xlence.com\/en\/why-us\/)\n- [Broker](https:\/\/www.xlence.com\/en\/broker\/)\n- [Awards](https:\/\/www.xlence.com\/en\/awards\/)\n\n##### [News & Analysis](https:\/\/www.xlence.com\/en\/news-analysis\/)\n- [Xlence Narrative Podcasts](https:\/\/www.xlence.com\/en\/xlence-narrative-podcasts\/)\n\n- [Xlence Narrative Podcasts](https:\/\/www.xlence.com\/en\/xlence-narrative-podcasts\/)\n\n##### [Education](https:\/\/www.xlence.com\/en\/education)\n- [Xlence Talks](https:\/\/www.xlence.com\/en\/xlence-talks\/)\n\n- [Xlence Talks](https:\/\/www.xlence.com\/en\/xlence-talks\/)\n##### [Blog](https:\/\/www.xlence.com\/xlence\/blog\/)\n\n##### [Markets](https:\/\/www.xlence.com\/en\/markets\/)\n- [Forex](https:\/\/www.xlence.com\/en\/markets\/forex\/)\n- [Metals](https:\/\/www.xlence.com\/en\/markets\/metals\/)\n- [Indices](https:\/\/www.xlence.com\/en\/markets\/indices\/)\n- [Commodities](https:\/\/www.xlence.com\/en\/markets\/commodities\/)\n- [Futures](https:\/\/www.xlence.com\/en\/markets\/futures\/)\n- [Shares](https:\/\/www.xlence.com\/en\/markets\/shares\/)\n\n- [Forex](https:\/\/www.xlence.com\/en\/markets\/forex\/)\n- [Metals](https:\/\/www.xlence.com\/en\/markets\/metals\/)\n- [Indices](https:\/\/www.xlence.com\/en\/markets\/indices\/)\n- [Commodities](https:\/\/www.xlence.com\/en\/markets\/commodities\/)\n- [Futures](https:\/\/www.xlence.com\/en\/markets\/futures\/)\n- [Shares](https:\/\/www.xlence.com\/en\/markets\/shares\/)\n##### [Trading](https:\/\/www.xlence.com\/en\/trading\/)\n- [Account&#2; 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Tradeco Limited is authorised and regulated by the Seychelles Financial Services Authority with licence number SD029.\n\nDamadah Holding Limited, with registered address of Spyrou Kyprianou, 68, Germasogeia, 4042 Limassol, Cyprus, facilitates payment services to Tradeco Limited.\n\nRisk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone, you should ensure that you understand the risks involved.\n\nXlence does not offer its services to residents of certain jurisdictions such as USA, Iran, Cuba, Sudan, Syria and North Korea.\n\n[Cookie policy](https:\/\/www.xlence.com\/en\/cookie-policy\/)\n\n© 2026 Tradeco Limited. All Rights Reserved.\n\nRisk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone, you should ensure that you understand the risks involved.\n\n[Chat with us](https:\/\/www.livechat.com\/chat-with\/1486502\/), powered by [LiveChat](https:\/\/www.livechat.com\/?welcome)\n\nThank you for visiting Xlence\\!\n\nThis website is not intended for UK residents, nor is it bound by the MiFID II regulatory framework or by the rules, guidance and protections set out in the UK Financial Conduct Authority Handbook.\n\nIf you still wish to access Xlence, please click below.\n\n[Continue Anyway](https:\/\/www.xlence.com\/en\/lessons\/lesson-12-an-introduction-to-pips-in-forex-trading\/#elementor-action%3Aaction%3Dpopup%3Aclose%26settings%3DeyJkb19ub3Rfc2hvd19hZ2FpbiI6IiJ9)\n\nThank you for visiting Xlence\\!\n\nThis website is not aimed at individuals residing in the EU and is not subject to European and MiFID II regulations.\n\nIf you still want to proceed to Xlence, please click below.\n\n[Continue Anyway](https:\/\/www.xlence.com\/en\/lessons\/lesson-12-an-introduction-to-pips-in-forex-trading\/#elementor-action%3Aaction%3Dpopup%3Aclose%26settings%3DeyJkb19ub3Rfc2hvd19hZ2FpbiI6IiJ9)\n\nThis site is registered on [wpml.org](https:\/\/wpml.org\/) as a development site. Switch to a production site key to [remove this banner](https:\/\/wpml.org\/faq\/how-to-remove-the-this-site-is-registered-on-wpml-org-as-a-development-site-notice\/?utm_source=plugin&utm_medium=gui&utm_campaign=wpml-core&utm_term=footer-notice).","attrs_readable_markdown":"## ***An Introduction to Pips in Forex Trading***\nIn this lesson, we will explore how changes in the value of a trading instrument are measured.\n\n### **Understanding pips in forex trading**\nIn forex pairs, a pip is the smallest amount of change in a currency pair. A pip measures the  \nmovement in exchange rates. It represents one-hundredth of 1% (1\/100 x .01) and is placed  \nin the fourth decimal place (0.0001).\n\nFor example, if EUR\/USD is priced at 1.1110 today and increases to 1.1121 tomorrow, the pair  \nhas moved up by 11 pips.\n\n### **Japanese yen**\nJapanese yen (JPY) pairs are an exception to the four decimal place rule as they are quoted  \nwith two decimal places. If you’re trading the EURUSD, a pip is worth 0.0001, while with the  \nUSD\/JPY one pip equals 0.01.\n\n### **Fractional pips or pipettes**\nFractional pips, or pipettes, are units of price movement in forex trading. A pipette is a fraction  \nof a pip, equal to one tenth of a pip and is placed in the fifth decimal place in currency pairs.  \nFractional pips give more accuracy when calculating profits or losses.\n\n### **Monetary value of a pip**\nA pip also has a monetary value, which depends on three factors: the currency pair, the  \nexchange rate, and the size of the trade.\n\n## **Example**\nIf you trade one lot in EUR\/USD, a change of one pip equals \\$10. For instance, if you enter a  \nlong position in EUR\/USD at 1.1100 and it moves up to 1.1200 the pair has moved upwards  \nby 100 pips – you would have gained \\$1,000. This is because your position size was €100,000  \nand the exchange rate increased by 0.0100 (or 100 pips). Therefore, your profit is equal to the  \nposition size multiplied by the change in the exchange rate:\n\n100,0000\\*0.0100=\\$1,000.\n\n• Your profit is \\$1,000  \n • Each pip of the EUR\/USD movement is \\$10.\n\n### **Calculating pip value**\nTo express this as an equation:\n\nPip value = Pip size \\* Position Size.\n\nFor each pip of one lot of EUR\/USD:\n\n€100,000\\*0.0001 = \\$10\n\nTo convert the pip value back to the base currency, divide the pip value by the current  \nexchange rate:\n\nPip value = (Pip size \\* Position size) \/ (Ex. rate))\n\nFor example, if your account is in GBP and you want to work out the pip value in GBP, convert  \nthe dollar pip value by using the GBP\/USD rate. So, for 1 lot:\n\n\\$10 \/ (GBP\/USD)\n\n## **Use of pips**\nPips apply only in the FX market. The change in the value of stocks, gold and oil is typically  \nmeasured in dollars and cents, reflecting the monetary value of each unit of the asset.  \nHowever, the change in value of indexes, especially for shares, is measured in ticks.\n\nIn the next lesson, we will discuss the various types of orders that traders can use to start  \ntrading.","meta_canonical":null}

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Boilerpipe Text	An Introduction to Pips in Forex Trading In this lesson, we will explore how changes in the value of a trading instrument are measured. Understanding pips in forex trading In forex pairs, a pip is the smallest amount of change in a currency pair. A pip measures the movement in exchange rates. It represents one-hundredth of 1% (1/100 x .01) and is placed in the fourth decimal place (0.0001). For example, if EUR/USD is priced at 1.1110 today and increases to 1.1121 tomorrow, the pair has moved up by 11 pips. Japanese yen Japanese yen (JPY) pairs are an exception to the four decimal place rule as they are quoted with two decimal places. If you’re trading the EURUSD, a pip is worth 0.0001, while with the USD/JPY one pip equals 0.01. Fractional pips or pipettes Fractional pips, or pipettes, are units of price movement in forex trading. A pipette is a fraction of a pip, equal to one tenth of a pip and is placed in the fifth decimal place in currency pairs. Fractional pips give more accuracy when calculating profits or losses. Monetary value of a pip A pip also has a monetary value, which depends on three factors: the currency pair, the exchange rate, and the size of the trade. Example If you trade one lot in EUR/USD, a change of one pip equals $10. For instance, if you enter a long position in EUR/USD at 1.1100 and it moves up to 1.1200 the pair has moved upwards by 100 pips – you would have gained $1,000. This is because your position size was €100,000 and the exchange rate increased by 0.0100 (or 100 pips). Therefore, your profit is equal to the position size multiplied by the change in the exchange rate: 100,00000.0100=$1,000. • Your profit is $1,000 • Each pip of the EUR/USD movement is $10. Calculating pip value To express this as an equation: Pip value = Pip size Position Size. For each pip of one lot of EUR/USD: €100,0000.0001 = $10 To convert the pip value back to the base currency, divide the pip value by the current exchange rate: Pip value = (Pip size Position size) / (Ex. rate)) For example, if your account is in GBP and you want to work out the pip value in GBP, convert the dollar pip value by using the GBP/USD rate. So, for 1 lot: $10 / (GBP/USD) Use of pips Pips apply only in the FX market. The change in the value of stocks, gold and oil is typically measured in dollars and cents, reflecting the monetary value of each unit of the asset. However, the change in value of indexes, especially for shares, is measured in ticks. In the next lesson, we will discuss the various types of orders that traders can use to start trading.
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Learn about trade execution, calculating profit and loss, managing spread and leverage, and how currency pairs are represented. - [Lesson 1: Introduction to the Forex Market](https://www.xlence.com/en/lessons/lesson-1-introduction-to-the-forex-market/) - [Lesson 2: Who Participates in the Forex Market?](https://www.xlence.com/en/lessons/who-participates-in-the-forex-market) - [Lesson 3: An Overview of the Forex Market](https://www.xlence.com/en/lessons/lesson-3-an-overview-of-the-forex-market/) - [Lesson 4: The Most Popular Currencies](https://www.xlence.com/en/lessons/lesson-4-the-most-popular-currencies/) - [Lesson 5: Currency Exchange Rates](https://www.xlence.com/en/lessons/lesson-5-currency-exchange-rates/) - [Lesson 6: Forex Fundamentals - A Beginner's Guide](https://www.xlence.com/en/lessons/lesson-6-forex-fundamentals-a-beginners-guide/) - [Lesson 7: Major, Minor, and Exotic Currency Pairs](https://www.xlence.com/en/lessons/lesson-7-major-minor-and-exotic-currency-pairs/) - [Lesson 8: Forex Before and After 1996](https://www.xlence.com/en/lessons/lesson-8-forex-before-and-after-1996/) - [Lesson 9: Speculating with Contracts for Difference](https://www.xlence.com/en/lessons/lesson-9-speculating-with-contracts-for-difference) - [Lesson 10: The Role of Leverage in Forex Trading](https://www.xlence.com/en/lessons/lesson-10-the-role-of-leverage-in-forex-trading) - [Lesson 11: Types of Lots in Forex](https://www.xlence.com/en/lessons/lesson-11-types-of-lots-in-forex/) - [Lesson 12: An Introduction to Pips in Forex Trading](https://www.xlence.com/en/lessons/lesson-12-an-introduction-to-pips-in-forex-trading/) - [Lesson 13: Market vs Pending Orders](https://www.xlence.com/en/lessons/lesson-13-market-vs-pending-orders/) - [Lesson 14: The Role of Pending Orders in Forex Trading](https://www.xlence.com/en/lessons/lesson-14-the-role-of-pending-orders-in-forex-trading/) - [Lesson 15: Understanding Bid, Ask, Spread, and Swap in Forex Trading](https://www.xlence.com/en/lessons/lesson-15-understanding-bid-ask-spread-and-swap-in-forex-trading/) - [Lesson 16: Essential Forex Terminology](https://www.xlence.com/en/lessons/lesson-16-essential-forex-terminology/) Fundamental Analysis Discover how economic news and fundamental factors impact the value of an asset, giving you a deeper understanding of market dynamics. Learn how the supply and demand of an asset relate to the corresponding market positions one should take in anticipation of these events. - [Lesson 17: Fundamental Analysis Understanding Supply & Demand in Forex Trading](https://www.xlence.com/en/lessons/lesson-17-fundamental-analysis-understanding-supply-demand-in-forex-trading/) - [Lesson 18: Exploring Exchange Rate Influences Growth, Trade Balance & Natural Resources](https://www.xlence.com/en/lessons/exploring-exchange-rate-influences-growth-trade-balance-natural-resources-lesson-18/) - [Lesson 19: The Interplay of Monetary Policy, Inflation & Exchange Rates](https://www.xlence.com/en/lessons/the-interplay-of-monetary-policy-inflation-exchange-rates-lesson-19/) - [Lesson 20: Fiscal Policy Basics and Interaction with Monetary Policy](https://www.xlence.com/en/lessons/fiscal-policy-basics-and-interaction-with-monetary-policy-lesson-20/) - [Lesson 21:Understanding Expectations Theory The Market's Response to Anticipated Changes](https://www.xlence.com/en/lessons/understanding-expectations-theory-the-markets-response-to-anticipated-changes-lesson-21/) - [Lesson 22:Popular Macroeconomic Indicators](https://www.xlence.com/en/lessons/popular-macroeconomic-indicators-lesson-22/) - [Lesson 23:Tracking Inflation Key Indicators and Price Measurement Strategies](https://www.xlence.com/en/lessons/tracking-inflation-key-indicators-and-price-measurement-strategies-lesson-23/) - [Lesson 24:Key Employment Indicators Understanding Labour Market Health](https://www.xlence.com/en/lessons/key-employment-indicators-understanding-labour-market-health-lesson-24/) - [Lesson 25:Understanding Consumption Business Sentiment Metrics](https://www.xlence.com/en/lessons/understanding-consumption-business-sentiment-metrics-lesson-25/) - [Lesson 26:Exploring Volatitlity Top Economic Indicators Worth Watching](https://www.xlence.com/en/lessons/exploring-volatitlity-top-economic-indicators-worth-watching-lesson-26/) - [Lesson 27:Understanding Market Jargon Key Currency Nicknames](https://www.xlence.com/en/lessons/understanding-market-jargon-key-currency-nicknames-lesson-27/) Technical Analysis Technical analysis involves observing the historical price patterns of an asset and using this data to predict where the next movement will occur. Gain the skills required to identify price patterns – notably through Charting analysis using graphical tools and Mechanical Analysis using technical indicators. - [Lesson 28: Introduction to Technical Analysis](https://www.xlence.com/en/lessons/introduction-to-technical-analysis-lesson-28/) - [Lesson 29: Dow Theory Explained](https://www.xlence.com/en/lessons/dow-theory-explained-lesson-29/) - [Lesson 30: 3 Types of Technical Charts](https://www.xlence.com/en/lessons/3-types-of-technical-charts-lesson-30/) - [Lesson 31: Candlestick Timeframes](https://www.xlence.com/en/lessons/candlestick-timeframes-lesson-31/) - [Lesson 32: Candlestick Patterns and their Meaning](https://www.xlence.com/en/lessons/candlestick-patterns-and-their-meaning-lesson-32/) - [Lesson 33: Identifying Support and Resistance Levels](https://www.xlence.com/en/lessons/identifying-support-and-resistance-levels-lesson-33/) - [Lesson 34: Uptrend, Downtrend and Sideways Trend](https://www.xlence.com/en/lessons/uptrend-downtrend-and-sideways-trend-lesson-34/) - [Lesson 35: Identifying Channels](https://www.xlence.com/en/lessons/identifying-channels-lesson-35/) - [Lesson 36: What are Fibonacci Retracements](https://www.xlence.com/en/lessons/what-are-fibonacci-retracements-lesson-36/) - [Lesson 37: Calculating Pivot Points](https://www.xlence.com/en/lessons/calculating-pivot-points-lesson-37/) - [Lesson 38: The Head and Shoulders Pattern](https://www.xlence.com/en/lessons/the-head-and-shoulders-pattern-lesson-38/) - [Lesson 39: The Importance of the Cup and Handle Formation](https://www.xlence.com/en/lessons/the-importance-of-the-cup-and-handle-formation-lesson-39/) - [Lesson 40: The Double Top and Bottom Pattern](https://www.xlence.com/en/lessons/the-double-top-and-bottom-pattern-lesson-40/) - [Lesson 41: The Falling and Rising Wedge Pattern](https://www.xlence.com/en/lessons/the-falling-and-rising-wedge-pattern-lesson-41/) - [Lesson 42: Ascending, Descending and Symmetrical Triangles](https://www.xlence.com/en/lessons/ascending-descending-and-symmetrical-triangles-lesson-42/) - [Lesson 43: What Are Flag and Pennant Chart Patterns](https://www.xlence.com/en/lessons/what-are-flag-and-pennant-chart-patterns-lesson-43/) - [Lesson 44: Characteristics of the Island Reversal Pattern](https://www.xlence.com/en/lessons/characteristics-of-the-island-reversal-pattern-lesson-44/) - [Lesson 45: The Different Gaps in Technical Analysis](https://www.xlence.com/en/lessons/the-different-gaps-in-technical-analysis-lesson-45/) - [Lesson 46: What are MAs](https://www.xlence.com/en/lessons/what-are-mas-lesson-46/) - [Lesson 47: How to Read Bollinger Bands](https://www.xlence.com/en/lessons/how-to-read-bollinger-bands-lesson-47/) - [Lesson 48: What is the Stochastic Oscillator](https://www.xlence.com/en/lessons/what-is-the-stochastic-oscillator-lesson-48/) - [Lesson 49: What is the RSI](https://www.xlence.com/en/lessons/what-is-the-rsi-lesson-49/) - [Lesson 50: What is the MACD](https://www.xlence.com/en/lessons/what-is-the-macd-lesson-50/) Trading Strategies Employing fundamental and technical analysis is only one part of a longer-term strategy. Widen your expertise as you learn to optimise your risk and money management requirements. - [Lesson 51: A brief look at the News Trading strategy](https://www.xlence.com/en/lessons/a-brief-look-at-the-news-trading-strategy-lesson-51/) - [Lesson 52: Understanding Day Trading Key Characteristics Features](https://www.xlence.com/en/lessons/understanding-day-trading-key-characteristics-features-lesson-52/) - [Lesson 53: A guide to Momentum Trading Leveraging Market Trends Technical Indicators](https://www.xlence.com/en/lessons/a-guide-to-momentum-trading-leveraging-market-trends-technical-indicators-lesson-53/) - [Lesson 54: What is hedging in trading Strategies, benefits & drawbacks](https://www.xlence.com/en/lessons/what-is-hedging-in-trading-strategies-benefits-drawbacks-lesson-54/) - [Lesson 55: What you need to know about Scalping](https://www.xlence.com/en/lessons/what-you-need-to-know-about-scalping-lesson-55/) - [Lesson 56: Using the Swing Trading Strategy Indicators & Key Features](https://www.xlence.com/en/lessons/using-the-swing-trading-strategy-indicators-key-features-lesson-56/) - [Lesson 57: A brief analysis of the Trend Trading Strategy Strategies for Long-Term Market Success](https://www.xlence.com/en/lessons/a-brief-analysis-of-the-trend-trading-strategy-strategies-for-long-term-market-success-lesson-57/) - [Lesson 58: Building a robust trading plan](https://www.xlence.com/en/lessons/building-a-robust-trading-plan-lesson-58/) - [Lesson 59: The impact of trading psychology](https://www.xlence.com/en/lessons/the-impact-of-trading-psychology-lesson-59/) ## Select Lesson # Lesson 12- An Introduction to Pips in Forex Trading ## *An Introduction to Pips in Forex Trading* In this lesson, we will explore how changes in the value of a trading instrument are measured. ### Understanding pips in forex trading In forex pairs, a pip is the smallest amount of change in a currency pair. A pip measures the movement in exchange rates. It represents one-hundredth of 1% (1/100 x .01) and is placed in the fourth decimal place (0.0001). For example, if EUR/USD is priced at 1.1110 today and increases to 1.1121 tomorrow, the pair has moved up by 11 pips. ### Japanese yen Japanese yen (JPY) pairs are an exception to the four decimal place rule as they are quoted with two decimal places. If you’re trading the EURUSD, a pip is worth 0.0001, while with the USD/JPY one pip equals 0.01. ### Fractional pips or pipettes Fractional pips, or pipettes, are units of price movement in forex trading. A pipette is a fraction of a pip, equal to one tenth of a pip and is placed in the fifth decimal place in currency pairs. Fractional pips give more accuracy when calculating profits or losses. ### Monetary value of a pip A pip also has a monetary value, which depends on three factors: the currency pair, the exchange rate, and the size of the trade. ## Example If you trade one lot in EUR/USD, a change of one pip equals \$10. For instance, if you enter a long position in EUR/USD at 1.1100 and it moves up to 1.1200 the pair has moved upwards by 100 pips – you would have gained \$1,000. This is because your position size was €100,000 and the exchange rate increased by 0.0100 (or 100 pips). Therefore, your profit is equal to the position size multiplied by the change in the exchange rate: 100,0000\0.0100=\$1,000. • Your profit is \$1,000 • Each pip of the EUR/USD movement is \$10. ### Calculating pip value* To express this as an equation: Pip value = Pip size \* Position Size. For each pip of one lot of EUR/USD: €100,000\0.0001 = \$10 To convert the pip value back to the base currency, divide the pip value by the current exchange rate: Pip value = (Pip size \ Position size) / (Ex. rate)) For example, if your account is in GBP and you want to work out the pip value in GBP, convert the dollar pip value by using the GBP/USD rate. So, for 1 lot: \$10 / (GBP/USD) ## Use of pips Pips apply only in the FX market. The change in the value of stocks, gold and oil is typically measured in dollars and cents, reflecting the monetary value of each unit of the asset. However, the change in value of indexes, especially for shares, is measured in ticks. In the next lesson, we will discuss the various types of orders that traders can use to start trading. [Next lesson](https://www.xlence.com/en/lessons/lesson-12-an-introduction-to-pips-in-forex-trading/) ## Have any questions? 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Readable Markdown	## *An Introduction to Pips in Forex Trading* In this lesson, we will explore how changes in the value of a trading instrument are measured. ### Understanding pips in forex trading In forex pairs, a pip is the smallest amount of change in a currency pair. A pip measures the movement in exchange rates. It represents one-hundredth of 1% (1/100 x .01) and is placed in the fourth decimal place (0.0001). For example, if EUR/USD is priced at 1.1110 today and increases to 1.1121 tomorrow, the pair has moved up by 11 pips. ### Japanese yen Japanese yen (JPY) pairs are an exception to the four decimal place rule as they are quoted with two decimal places. If you’re trading the EURUSD, a pip is worth 0.0001, while with the USD/JPY one pip equals 0.01. ### Fractional pips or pipettes Fractional pips, or pipettes, are units of price movement in forex trading. A pipette is a fraction of a pip, equal to one tenth of a pip and is placed in the fifth decimal place in currency pairs. Fractional pips give more accuracy when calculating profits or losses. ### Monetary value of a pip A pip also has a monetary value, which depends on three factors: the currency pair, the exchange rate, and the size of the trade. ## Example If you trade one lot in EUR/USD, a change of one pip equals \$10. For instance, if you enter a long position in EUR/USD at 1.1100 and it moves up to 1.1200 the pair has moved upwards by 100 pips – you would have gained \$1,000. This is because your position size was €100,000 and the exchange rate increased by 0.0100 (or 100 pips). Therefore, your profit is equal to the position size multiplied by the change in the exchange rate: 100,0000\0.0100=\$1,000. • Your profit is \$1,000 • Each pip of the EUR/USD movement is \$10. ### Calculating pip value* To express this as an equation: Pip value = Pip size \* Position Size. For each pip of one lot of EUR/USD: €100,000\0.0001 = \$10 To convert the pip value back to the base currency, divide the pip value by the current exchange rate: Pip value = (Pip size \ Position size) / (Ex. rate)) For example, if your account is in GBP and you want to work out the pip value in GBP, convert the dollar pip value by using the GBP/USD rate. So, for 1 lot: \$10 / (GBP/USD) ## Use of pips Pips apply only in the FX market. The change in the value of stocks, gold and oil is typically measured in dollars and cents, reflecting the monetary value of each unit of the asset. However, the change in value of indexes, especially for shares, is measured in ticks. In the next lesson, we will discuss the various types of orders that traders can use to start trading.
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