What Is A Pip? Flashcards
A pip stands for…
Point in percentage
In FX, we would consider a pip a … for calculating …..and….
point…profits…losses
A mini lot is…
10,000 units of a currency
A standard lot is…
100,000 units of a currency
A micro lot is worth
1,000 units of a currency
In all pairs involving the JPY, a pip is the 1/…. place.
100th
In all other currency pairs, a pip is the 1/…. place (4 places to the right of the decimal).
10,000th
The spread is a component of your …..
transaction cost
The value of a pip for a 10,000 unit trade is roughly equal to …. unit of your denominated currency (or $1 if you have a USD account).
1
There are …. ways by which the actual value per pip is calculated
Two
The first method is to…
Find the value per pip of the smallest trade size
To find out the smallest trade size for an account, just…
Go to “create market order” and select 1 next to “amount (K)”
The second method of determining the value per pip is to…
open the “Market Order” pop up box by left clicking on the dealing rate like you’re going to place a trade. It’s titled, “per pip” right below the “amount” subsection.
