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Educational content, not investment advice.

Souq Dailyسوق ديليSouq Daily

Lesson 3 of 104:103 Sources

The pip and its value — with numbers

Recorded. Publishing soon

Presented by NourIn Arabic, with captions. Other languages are coming.

Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.

A pip is the standard small unit for measuring a currency price move.

  • Most pairs: the 4th decimal (0.0001). Yen pairs: the 2nd decimal (0.01). A 5th digit, if shown, is a tenth of a pip.
  • Pip value = pip size × units traded. EUR/USD: 100,000 units ≈ $10 per pip, 10,000 ≈ $1, 1,000 ≈ $0.10.
  • 30 pips can mean $300, $30 or $3 — size decides.
  • When USD is not the quote currency, compute in the quote currency first, then convert (USD/JPY at 150: ¥1,000 ≈ $6.67).
  • Always translate stop distance into money before trading.

Quick check

Three questions. Pick an answer to see why.

0/3

  1. 1.EUR/USD moves from 1.1000 to 1.1030. How many pips is that?

  2. 2.What is the pip value on 10,000 units of EUR/USD (USD account)?

  3. 3.For USD/JPY, which digit is the pip?

Sources

Every fact in this lesson is backed by the sources below.

  1. 1.NFA — Trading in the Retail Off-Exchange Foreign Currency Market: What Investors Need to KnowPip = smallest unit of trading in a foreign currency price; profit example on a 100,000-euro transaction
  2. 2.MetaQuotes — MetaTrader 5 Help: Margin calculation (Retail Forex)Example: 1 lot of EURUSD with contract size 100,000
  3. 3.MetaQuotes — MetaTrader 5 Help: Quotes / symbol specificationContract size = number of units in one lot

Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.