FOREX... what is a Pip?

FOREX... the next step in the money making game? - A place where currency are exchanged by people all over the world!
@ahgong (10064)
Singapore
May 7, 2009 8:26pm CST
Well, I have been busy of late. Trying to learn more about the money game. That is when I stumbled upon some books which relates to FOREX. I am wondering, if it is a viable option towards getting ahead in the money game. As in any game, in order to do well in it, one has to know the rules and understand the game before one can even think about joining and staying in the game. The FOREX is a big game arena, according to the book I am reading. And it is played by anyone and everyone around the world. There are lots of technical jargon that goes with this game. And I am getting all confused over it. Being a novice, reading the book is kinda dry and boring. And if you cannot understand what you are reading, it gets worst! According to the books I am reading, a Pip is the smallest price change that a given currency pair exchange rate can make. This much I understand. But there is a way to calculate the value of one Pip based on the currency pair that you are considering to trade. Any gurus out there can give me a layman's low down on how to calculate the value of one Pip?
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2 responses
@kun2349 (23464)
• Singapore
8 May 09
haha =D Sorry, ah gong, i'm not able to help u because i'm not really into forex.. However, if u need some kind of help, u can approach angelia though, because she's interested in forex as well.. haha =D Forex might be easy money, but u can lose just as much when one starts to get greedy.. So, it pays to be careful and only enter the market when u are really sure about it ^_^
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@ahgong (10064)
• Singapore
8 May 09
Yeah, that is why ahgong is doing home work now. Reading and learning before trying anything. Must understand the rules before joining the crowd. And also if possible, sharpen my skills by practicing with e-money before putting any real dollars down. Heh heh... say, where is angelia these days? I rarely see her message notifications anymore.
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@kun2349 (23464)
• Singapore
9 May 09
haha =D Happy home working.. lol =D I think she's still quite busy over those minibond issues.. It's been quite long since she logged in to mylot.. hehe ^_^ Hope that u can succed in forex, so that u are able to share some, secrets with me too.. lol =D
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@ahgong (10064)
• Singapore
22 May 09
I am definitely working on it my friend. And if I do succeed in it, I am sure you can too! IT is a matter of getting out of our comfort zones to seek out new areas of life that we have not explored.
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@oudine2 (147)
• Argentina
5 Jun 09
Some time ago, a PIP was what you said, but now, it´s not correct that definition. For example, a pip in the eur/usd market is 0.0001, but some brokers now offer quotes with one more decimal, for example, 1.42155, so the minimum amount that can move is 0.00001, but the pip it´s still 0.0001, because, before that was the minimum amount that the pair could move, eventhough nowadays that has changed, the pip is still as I said 0.0001 The GBP/JPY a pip is 0.01, and as in the other pair, some brokers offer quotes with one more decimal, such as 98.915 For silver and gold a pip is also 0.01 As for the price, it depends on the lot you are trading. If you are trading a full lot (10k), each pip is worth 1 dollar, if you are trading 0.1 lots, each pip is worth 10 cents. Some broker now have units instead of lots, it´s the same, 10000 units is one lot, so 100 units are worth 1 cent each pip.
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