Thread: Pip Value Question

Earlier today I opened Two positions in the same account at the Exact Same time(both.2 lots):Long GBP/USD, opened at 1.7630. Shortly after, the current price was 1.7624, a gap of 6 pips, with a reduction showing of $(12.00). Short EUR/GBP, opened in .6842. Shortly after, the current price was .6857, a gap of 15 pips, with a reduction showing of $(52.89). My observation was that the EUR/GBP'd 60% more loss in the amount of pips than the GBP/USD, but there was 75% more loss in the dollar figure. I contacted the broker and asked about this and was told that the reason as a result of different pip values to the currency pairs. The rep. went on to explain how to figure the pip values for each pair. I stated I do not have enough time to compute pip values until I place a trade as a result of fast moving markets. I asked why the pip values for each pair aren't recorded on the dealing rates page. The rep. responded that this feature isn't available today, but will be a future upgrade. My questions relating to this are 1) why do currenciy pairs have different pip values? 2) are pip values the exact same whatever the broker you use? 3) are there any brokers that list pip worth in 1 area on their dealing rates page? 4) do pip values for each pair change regularly, or are they fixed? 5) are pip values associated with the spread of currency pairs? 6) is there a web site that has real time pip worth, and if so, what is it? It is a good thing I'm still demo trading, as I'd have burned on this when I were trading more lots. Any other comments relating to this appreciated.

Originally Posted by ;

Earlier today I opened 2 positions in the same account at the same time(both.2 lots):Extended GBP/USD, opened at 1.7630. Soon after, the current price was 1.7624, a difference of 6 pips, with a reduction showing of $(12.00). Short EUR/GBP, opened in .6842. Soon after, the current price was .6857, a difference of 15 pips, with a reduction showing of $(52.89). My observation was that the EUR/GBP had 60% more decrease in the amount of pips compared to the GBP/USD, but there was 75% more decrease in the dollar figure. I contacted the broker and asked about this and was told the reason due to different pip values to its currency pairs. The rep. proceeded to describe how to calculate the pip values for each pair. I stated I don't have enough time to calculate pip values before I place a trade due to fast moving markets. I asked why the pip values for each pair aren't listed on the dealing rates page. The rep. replied that this feature isn't available today, but will probably be a future upgrade. My questions relating to this are 1) why do currenciy pairs have distinct pip values? 2) are pip values exactly the same whatever the broker you use? 3) Are there some brokers that list pip worth in 1 area in their coping rates page? 4) do pip values for each pair change regularly, or are they fixed? 5) are pip values associated with the spread of currency pairs? 6) is there a web-site that has real time pip worth, and if so, what is it? It is a good thing I'm still demonion trading, as I'd have got burned on this if I were trading more lots. Any other comments relating to this appreciated.

Mike;

When you've FXCM's platform (I do, but I don't like FXCM and don't use them for trading) the pip values are shown for all of the pairs if you've got the Dealing Rates Window set to Standard and not Advanced under Look Feel. The values are listed under the Pip Cost. EURGBP is the highest among at: 1.76
They don't actually change very much. At most I think about a cent or two once in awhile.

Originally Posted by ;

Earlier today I opened 2 positions in the same account at the Exact Same time(both.2 lots):Extended GBP/USD, started at 1.7630. Soon after, the current price was 1.7624, a difference of 6 pips, with a reduction revealing of $(12.00). Short EUR/GBP, started in .6842. Soon after, the current price was .6857, a difference of 15 pips, with a reduction revealing of $(52.89). My observation was that the EUR/GBP had 60% more loss in the number of pips than the GBP/USD, but there was 75% more reduction in the dollar figure. I contacted the broker and asked about this and was told the reason due to different pip values to its currency pairs. The rep. proceeded to explain how to figure the pip values for each pair. I stated I do not have enough time to calculate pip values until I place a trade as a result of fast moving markets. I asked why the pip values for each pair are not listed on the working rates page. The rep. replied that this feature isn't available now, but will be a future update. My questions relating to this are 1) why do currenciy pairs have different pip values? 2) are pip values the exact same whatever the broker you use? 3) are there any brokers that record pip values in one place on their coping rates page? 4) do pip values for each pair change regularly, or are they fixed? 5) are pip values correlated to the spread of currency pairs? 6) is there a web site that has real-time pip values, and if so, what's it? It's a good thing I am still demonion trading, as I'd have got burned on this if I were trading more lots. Any comments about this appreciated.

Mmills4x,


All currency pairs are valued in the denomination of their back pair. Crosses such as EUR/GBP are valued in GBP. Therefore, if you've got a 10 pip profit in 100,000 EUR/GBP, also GBP/USD is trading in 1.76, your gain is 10 Pounds, that equals 10*1.76 *10 = US $176. The logic would be used in EUR/JPY,but pair is valued in yen.

If you are attempting to choose which pair to trade, does exactly the pip value have any influence in your decision? Is it normally best to trade a pair using a minimal pip
value or higher pip value? I've noticed the values can vary widely between different pairs, so a high pip value could be your worst enemy or your very best friend, based on which course you put your trade.

Https://www.nigeriaforextrading.com/...g-systems.html

If not, I'll have a stab at all here....can someone audit my answers?

1) currency pairs have different pip values because they trade at different prices....some are inactive, others are lively, see connected thread w/explanation from dial up....

Two ) yes

3) I use GFT and they have a pip calculator which can do it for you based on current price, it is a very simple calculation to perform with excel (again see dial's case on connected ribbon )

4) see response #1

5) no

6) I never had the need with my broker having a calculator

You said yourself, a big/small pip worth could be your best buddy of enemy;--RRB- A pip worth would not influence my choice to trade, but maybe my trade size.