Forex Pip | Trading Profit Calculation

On August 23, 2010, in Forex Broker, Forex Trading Strategies, Forex Tutorial, by David

Forex pips are how currency trading profit and loss are calculated. Currencies are traded at fractions of a penny, measured in pips.

They are the units of change. For most currency pairs, it goes up to 4 digits after the decimal point. For the Japanese Yen (JPY) the forex trading pip is two digits.

So for example, if the USD/CAD is at 1.0455 and it changes to 1.0460, we say that it has gone up 5 pips. The forex profit by the change in pips.