Pips and forexcashbackcalculator"https://www.fxeastcashback.com">East forex cashback. cashbackforexbtc pipsHere Eastforexcashback do something mathematicalYou may have heard of "pips", "0.1 pips" and "lots" Next here we will explain what they are and show you how they are calculated You have to take your time to master this information, because it is a must-know knowledge in all forex trading, and you should not even think about trading until you are comfortable using these spreads to calculate profit and loss.  The unit used to express the change in cashback forex between two currencies is called a "pip" If the EUR/USD rate moves from 1.2250 to 1.2251, this is a basic pip is the last decimal place of the quote, four decimal places are for non-yen currency pairs If it is a currency pair containing yen, then the pip corresponds to its currency quote. Then the point corresponds to the second decimal place of its currency quote should be very important: there are brokers who quote currency decimal places beyond the standard "4 and 2" to reach "5 and 3" decimal places they use 0.1 point For example, if GBP/USD goes from For example, if GBP/USD moves from 1.51542 to 1.51543, it moves by 0.1 pips Since each currency has its own value, it is necessary to calculate the value of a pip in special currency transactions In the following example, our quotes will use 4 decimal places in the first currency quoted in USD, calculated as follows: 1. USD/CHF at 1.52500.0001 divided by Exchange rate = point value of 0.0001/1.5250 = 0.0000655 2. USD/CAD at 1.48900.0001 divided by exchange rate = point value of 0.0001/1.4890 = 0.00006715 3. USD/JPY at 119.80 Note that this currency is only for two (other currencies up to four decimal places The last four) decimal places in this case will be 1 point.01.01 divided by the exchange rate = point value.01/119.80 = 0.0000834 Where the dollar is not the first quote, we want to get the value of the dollar, we must add a step 1. EUR/USD at 1.22000.0001 divided by the exchange rate = point value Therefore 0.0001/1.2200 = 0.00008196 EUR but we need to go back to the USD calculation so we add another calculation EUR exchange rate x exchange rate so 0.00008196x1.2200 = 0.00009999 so to sum up the result is 0.0001 2. GBP/USD at 1.79750.0001 Divided by the exchange rate = the value of the point so 0.0001/1.7975 = ￡0.0000556 However, we need to go back to the dollar calculation so we add another calculation for the pound exchange rate x the conversion rate so 0.0000556x1.7975 = 0.0000998 so to sum up the result is 0.0001 You might be rewinding to look at it and think "Do I really need to calculate all this shake out?" Well, the answer is a big no almost all forex dealers will automatically work these out for you, but it always pays for you to know how to work them out If your broker doesnt do this, dont worry - you can use our pip value calculator! Arent we great? In the next section, we will discuss how these seemingly insignificant quantities can add up