Learn about the value of every pip within the confines of the particular transaction. If the exchange rate of the EUR/USD is 1.5220 and you want to buy 100,000 Euros, how many USD you need to pay? 152,200 USD, of course. A second passes and the exchange rate rises to 1.5221. By how many pips did the exchange rate rise? By one pip. And what is the current value of the 100,000 Euro? 152,210 USD, Which is 10 USD more.
- The value of one pip in a transaction of 10,000 Euros is one USD.
- In other words, in a transaction of 100,000 Euros, each pip has a value of 10 USD.
- And in a transaction of one million Euros – 100 USD.
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