forex pips calculator, pips meaning in trading

Hey everyone, Our course on forex basics is ongoing, and today’s lecture forex pips calculating focuses on understanding pips and points in forex trading.

It’s essential to analyze the market effectively, manage stop losses, and observe fluctuations. If you don’t grasp the concepts of pips and points, you won’t be able to analyze the market properly.

👉Forex calculator

Now, let’s shift to the screen and go step-by-step to analyze the market using pips and points. For demonstration, I’ll use two currency pairs. First up is Euro USD, and we’ll also take a look at USD/Jpy.

##pips example ##

Eur/usd example (pips& points)

When we examine the rates, for instance, say the Euro USD shows 1.22624, The digits green after the decimal represent the pips, while the last digit represents red is  points.

So, in this case, the last digit '4' is our point, while the first four digits (1.2262) are indeed the pips. Remember, one pip is equivalent to ten points.

Now, for example, if the market dips down showing a rate of 1.52351, and it drops down to 1.52251, we can see a fall of 10 points.

Keep in mind that left side rates don’t change suddenly; focus on the pips, as they are your target for profit.

usd/jpy example

Current rate showing 1.234. market going up 10 pips. so price rate will show 1.334

The importance of pips and points cannot be overstated—they are vital for your success in trading forex.

If you haven't already watched our previous videos, I strongly encourage you to do so. Please like this video if you found it hel