monday gappies200910, page-48

Bentano

For all the major currencies (AUD, CAD, CHF, EUR, GBP, NZD, USD) a pip is 100th of a cent, for example:

AUDUSD moves from 0.9500 to 0.9501 thats 1 pip. Some providers (as 10c says) may show quotes with an extra decimal place, such as IG which would show the above as 0.95000 to 0.95010, but that change is still 1 pip. With these currencies I find it helps to calculate the difference, which in the above example is 0.0001 or 0.00010 and then multiply by 10,000, which gives 1.

For pairs denominated in yen, the story is different:

i.e. for AUDJPY, USDJPY, etc, a pip is 100th of a yen. For example the AUDJPY may change from 81.00 (or 81.000 on IG) to 81.01 (or 81.010 on IG), and that is a 1 pip move. For yen denominated pairs I calculate the number of pips by multiplying the change (0.01 or 0.010) by 100, which gives 1.

Cheers, Sharks.