#twitter-follow { border: 0;position: fixed; top: 240px; left:0;} #live-support { border: 0;position: fixed; top: 370px; left:0;} #knowledge-base { border: 0;position: fixed; top: 170px; left:0;}

## PIPS conversion formula in Forex trading

by Brian Brown, 3952 days ago

In Forex trading, a PIP is the smallest price increment that can be made by a currency. PIP refers to "percentage in point" and it is very important in Forex as it is the basis for calculating profit and loss and measuring spreads (bid/ask differences).

Usually the value of a PIP is 0.0001, so 100 PIPS equal to 0.01. There is however one exception, which is the Japanese Yen. If Japanese Yen (JPY) is the base or quote currency of a pair then the PIP value becomes 0.01.

"PIPS" function returns the value of N pips for the current currency pair. It returns the value of a pip multiplied by a given number. Obviously, the result is either 0.0001*N or 0.01*N depending on whether the pair symbol contains "JPY" or not.

If you take the most active pair, EUR/USD, and execute the following formula:
a = pips(500);

The variable "a" will get a constant value of \$0.05.
You can get the dollar value of a specific number of pips by dividing the amount in dollars by the pip value:
a = \$0.05 / pips(1); // Returns 500

If you strategy consists of:
Buying when open price is 50 pips higher than previous close: Set "Buy using market order at the price of ____" and then enter the following formula: open + pips(50)
Using a 100 pips stop loss: Active stop loss (points) and then set the following formula: pips(100)

What is this?

 Type: Trading Indicator Object ID: 1015 Country: All Market: Forex Market Style: Technical Analysis

 Related objects Empty
Number of reviews
Average rate
Click to rate this item
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

 Random Blog Posts Step by step on how to get free realtime/delayed data for stocks, futures and currencies Compare stocks and securities by creating a relative performance chart Buy the best/top rated stocks or how to create powerful rank based trading systems Ranking stocks based on their correlation with the S&P 500 Index Creating Stock & Market Short Interest Ratios using Historical Short Sale Data Select the best ETFs combination to maximize your return and reduce your investment risk How to turn any ordinary trading strategy into a very profitable one Charting & Scripts - Manage stock charts using the global script Show All

Number of reviews
Average rate
Click to rate this item
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.