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Tags: Pip values
How to Calculate Pip Values
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2008-06-18 12:48:11
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How to Calculate Pip Values
A pip is the smallest increment in any currency pair. In EURUSD, a movement from .8941 to .8942 is one pip, so a pip is .0001. In USDJPY, a movement from 130.45 to 130.46 is one pip, so a pip is .01. How much in dollars is this movement worth, for example, per 10,000 Euros in EURUSD? How much is one pip worth per 10,000 Dollars in USDJPY? We will refer to the size, in this case 10,000 units of the base currency, as the Notional Amount. The formula for calculating a pip value is...
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Anna Moria
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