Qazi Forex Tips
A fixed risk on every trade and a stop loss you place first. Protecting the account comes before everything else.
How Dr. Qazi teaches
The pip in one line
For most currency pairs a pip is the 4th decimal place: a move from 1.1000 to 1.1001 on EURUSD is 1 pip. For pairs quoted in Japanese yen (USDJPY, EURJPY, GBPJPY) a pip is the 2nd decimal place: 150.00 to 150.01 is 1 pip.
Most brokers show one more digit. That extra digit is a pipette, a tenth of a pip: 1.10005 has 0.5 pip beyond 1.1000.
Pip value
Pip value is the money one pip is worth for a given lot size.
- For pairs quoted in US dollars (EURUSD, GBPUSD, AUDUSD): 1 lot = $10 per pip, 0.10 lot = $1, 0.01 lot = $0.10.
- For other pairs the value changes with the price. On USDJPY, 1 lot is 1,000 yen per pip, about $6.67 when USDJPY is at 150.
Formula for a standard lot: pip value = 100,000 × pip size ÷ (price of USD in the quote currency). Example USDJPY at 150: 100,000 × 0.01 ÷ 150 = $6.67.
Pips on Gold (XAUUSD)
Gold is priced in dollars per ounce, for example 2,350.45. Brokers do not all define a Gold pip the same way, which confuses many beginners. The safer habit is to think in dollars of price movement: on most brokers one lot is 100 ounces, so a $1 move in Gold is $100 per lot and $1 per 0.01 lot. Check your broker's contract size in the symbol specification.
From pips to money
Money at risk = stop loss in pips × pip value per lot × lots. Example: 25 pips × $10 × 0.04 lot = $10. Turn it around and you get the lot size for any risk; see the lot size lesson.
Khulasa (Roman Urdu / Hindi)
- Zyada tar pairs mein pip 4th decimal hai; JPY pairs mein 2nd.
- Akhri chhota digit pipette hai (pip ka dasvan hissa).
- USD quote pairs: 1 lot = $10/pip, 0.01 lot = $0.10/pip.
- Gold mein dollars mein sochein: 0.01 lot = $1 per $1 move (zyada tar brokers).
Questions
How much is 1 pip worth?
On pairs quoted in US dollars, $10 per standard lot, $1 per mini lot (0.10) and $0.10 per micro lot (0.01).
What is the difference between a pip and a point?
In MetaTrader a point is the smallest price step. On 5-digit brokers 1 pip = 10 points.
How many pips is 1.1000 to 1.1050?
50 pips.
What is a pip on USDJPY?
The 2nd decimal place: 150.00 to 150.01 is one pip.
How many pips does Gold move in a day?
It varies with volatility; it is easier to measure Gold in dollars of movement, for example a $20–$40 daily range, and check your broker's contract size.
Why does pip value change on some pairs?
When the quote currency is not your account currency, the pip value is converted at the current exchange rate.
Watch the video lessons
Lot size in forex: how to choose the right lot size on every tradeVideo lesson · 33:42
Money management plan: grow a small account step by stepVideo lesson · 18:38
Where to set stop loss and take profit, and when to close halfEducation only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Contract sizes, spreads and leverage differ by broker; check your own broker's specifications.