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pip is the smallest price move that an exchange rate can make based on market convention

Pip is an acronym for “percentage in point”.

   quotes currency pairs by “5, 3 and 2” decimal places – also known as fractional pips or pipettes.

  • On a 5 decimal place currency pair a pip is 0.00010
  • On a 3 decimal place currency pair a pip is 0.010
  • On a 2 decimal place currency pair a pip is 0.10

(multiply face value by .0001.  1/10,000th is a pip for all pairs (except JPY pairs a pip is .01)

AUD/USD – AUD is the base currency/ USD is the counter currency

For example: If AUD/USD moves from 0.70609 to 0.70619, that .00010 USD move higher is one pip.

When trading FX and other symbols there are some easy rules to calculate the ‘pip-value’ of the trade so you can work out your Risk Reward quickly (potential gains and losses quickly)

 

  • When trading a ‘spot’ instrument the pip value will always be in the second quoted symbol in the currency pair lets take a look at some examples:

                                          EUR/USD, this means the pip value will be based in USD (U.S. Dollars)

                                          GBP/AUD this means the pip value will be based in AUD  (Australian Dollars)

                                           EUR/GBP this means the pip value will be based in GBP (Great British Pound) also known as Pound Sterling

  • This also applies to commodity pairs such as Gold (XAU/USD) – where the pip value will be based in USD

  • For Indices, the point value will be based in the currency of the country that hosts that stock index; for instance, AUS200 is traded in Australia, which mean that the point value is given in AUD (Australian Dollars);     GER30 is traded in Europe which means that the point value is given in EUR (Euro); US500 is traded in the US, so the point value will be in USD (US Dollars)

(multiply face value by .0001.  1/10,000th is a pip for all pairs (except JPY pairs a pip is .01)

 

A list of all traded symbols and their pip values is shown below. The pip scales in direct proportion to the trade size – so a 5 lot trade will have five times the value per pip as a 1 lot trade.

FX pairsPip Value per 1 Standard LotPip Value per 0.1 Standard LotsPip Value per 0.01 Standard Lots
AUDCAD10 CAD1 CAD0.10 CAD
AUDCHF10 CHF1 CHF0.10 CHF
AUDJPY1000 JPY100 JPY10 JPY
AUDNZD10 NZD1 NZD0.10 NZD
AUDSGD10 SGD1 SGD0.10 SGD
AUDUSD10 USD1 USD0.10 USD
CADCHF10 CHF1 CHF0.10 CHF
CADJPY1000 JPY100 JPY10 JPY
CHFJPY1000 JPY100 JPY10 JPY
CHFSGD10 SGD1 SGD0.10 SGD
EURAUD10 AUD1 AUD0.10 AUD
EURCAD10 CAD1 CAD0.10 CAD
EURCHF10 CHF1 CHF0.10 CHF
EURCZK10 CZK1 CZK0.10 CZK
EURGBP10 GBP1 GBP0.10 GBP
EURJPY1000 JPY100 JPY10 JPY
EURNOK10 NOK1 NOK0.10 NOK
EURNZD10 NZD1 NZD0.10 NZD
EURSEK10 SEK1 SEK0.10 SEK
EURSGD10 SGD1 SGD0.10 SGD
EURUSD10 USD1 USD0.10 USD
GBPAUD10 AUD1 AUD0.10 AUD
GBPCAD10 CAD1 CAD0.10 CAD
GBPCHF10 CHF1 CHF0.10 CHF
GBPJPY1000 JPY100 JPY10 JPY
GBPNZD10 NZD1 NZD0.10 NZD
GBPUSD10 USD1 USD0.10 USD
NZDCAD10 CAD1 CAD0.10 CAD
NZDCHF10 CHF1 CHF0.10 CHF
NZDJPY1000 JPY100 JPY10 JPY
NZDUSD10 USD1 USD0.10 USD
SGDJPY1000 JPY100 JPY10 JPY
USDCAD10 CAD1 CAD0.10 CAD
USDCHF10 CHF1 CHF0.10 CHF
USDCNH10 CNH1 CNH0.10 CNH
USDJPY1000 JPY100 JPY10 JPY
USDMXN10 MXN1 MXN0.1 MXN
USDNOK10 NOK1 NOK0.10 NOK
USDSEK10 SEK1 SEK0.10 SEK
USDSGD10 SGD1 SGD0.10 SGD
USDTRY10 TRY1 TRY0.10 TRY
USDZAR10 ZAR1 ZAR0.10 ZAR
CommoditiesPip Value per 1 Standard LotPip Value per 0.1 Standard LotsPip Value per 0.01 Standard Lots
XAGUSD50 USD5 USD.5 USD
XAUUSD10 USD1 USD0.10 USD
IndicesPoint Value per 1 Standard Lot
US5001 USD
US301 USD
NAS1001 USD
AUS2001 AUD
STOXX501 EUR
DE301 EUR
FR401 EUR
IT401 EUR
SPA351 EUR
UK1001 GBP
JPN225100 JPY
US20001 USD
CN501 USD