Learning Forex- PIPS and PIPETTES( Episode-4)

Welcome again everyone,
This is 4th consecutive article on the forex learning. I am starting to enjoy to write about this topic. Hope, you guys also find its interesting. For the people, who just got here today, this is my successive article on forex learning. This one is the "Fourth/4th"one. Here the previous ones-

1. https://steemit.com/forex/@shuvomahfuz/learning-forex-a-to-z-of-forex

2. https://steemit.com/forex/@shuvomahfuz/learning-forex-a-to-z-of-forex-episode-2

3. https://steemit.com/forex/@shuvomahfuz/learing-forex-market-basic-episode-3

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PIPS

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A currency pair in the Forex market, every single change or movement, after decimal point,in the 4th number or later that number is called a pip. PIPS are plural of pip, such as Market has changed 120 pips today. Many people say points instead of pips. However, pips are widely used internationally.

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Most people spend a lot of time knowing what pips are. Let's see, if we can easily learn with the help of some examples.

Example 1:
You have opened your terminal (your broker trading software). Suppose, EUR / USD was 1.4340 and currently it is 1.4345. SO,How many pips has changed?\

Extraction rules: high-low = 1.4345 - 1.4340 = 0.0005

As I said before, the counting of pips began, the fourth number after the decimal point. Forget the decimal, let's easily calculate:

4345-4340 = 5, In other words, the market has changed to 5 pips.

So say now,

Example 2:

GBB / USD went from 1.5630 to 1.5639. How much pips the market moved?
5639-5630 = 9 pips.

Let's look at some more:
Market Movement (EUR / USD)
Previously 1.3450, currently 1.3432 = 3450 - 3432 = 18 pips market movement

Previously 1.3450, currently 1.3550 = 3550 - 3450 = 100 pips market movement

Earlier it was 1.3750, currently 1.3432 = 3750 - 3432 = 318 pips market movement

Earlier it was 1.4450, currently 1.3450 = 4450 - 3450 = 1000 pips market movement

Hope you can understand.Test yourself:

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Puzzle 2:
EUR / USD was earlier 1.3570, currently 1.3550.How much pips the market has moved?
If you can answer the problem, then you are on the right track.Try to get the help from the upper examples.

You have to clear ideas about pips, because -

Forex market is calculated with the movement pips. Often the euro / USD will increase to 200 pips today The market is moving very fast, it has increased 100 pips in 5 minutes etc.

Pipettes:

In some brokers, the price is 5 digits after the decimal. Eg 1.425561. This fifth digit is the so called Pipettes. So if the price goes from 1.425561 to 1.42667, it should be understood that, 10 pips and 6 pipettes or 106 pipettes have been changed.

Well this is all for today! I am not going to put any more in it. Let's talk about the later part in the next one. Feel free to leave a comment, if you have any queries. I will try my best to give you the desired answer.

Please Up-vote and Follow, which will give me encouragement. Thanks for the visiting my Blog.See you soon. Until then, stay safe and happy.

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