# Point (point) forex.

It seemed such a simple question, "What is the point of forex?" Sometimes causes a lot of confusion and more questions, because for each currency pair there is a proper value of the item, as well as its size is affected by other factors.

Point (point) Forex - sometimes called a pip is the last digit in the quote of the currency pair that describes the smallest possible change in the exchange rate against currencies in a currency pair.

If you pay attention to forex quotes, you will notice that each of the tools is the owl number of decimal places, but this factor has absolutely no value, one point will still be equal to the last figure in the record.

For example.

AUDCAD - 1,0596 price increase of 1 point in this case lead to a quotation 1.0597

CADJPY - 92.47 in this case, the change to have touched the second digit after the decimal point.

In addition, the quotation of the currency pair in some cases it may be three to five decimal places.
forex pip value.

When you trade it should be noted that although all of the transaction and have standard amounts, which are measured in lots, but the value of one pip forex for each currency pair will still be different.

So be sure to consider what form of currency this currency pair in the calculation, and if the base currency is always to measure the volume of trade, the value of one point will be calculated depending on the quote. The more weight is given currency, the greater the value of our index.

In addition, we should not forget about the number of characters in the quotation, this factor also has a direct impact on the calculations.

The cost of the same item directly depends on committed volumes, the greater the volume of transactions carried out, the more this indicator.

The simplest example is the calculation of the pair EURUSD, for convenience we take the volume of transactions in 1 lot, or 100,000 of the base currency.

0,0001h100 000 = \$ 10

We change to the USDJPY currency pair

0,01h100 000 = 1,000 Japanese yen or US \$ 10.55

Try to settle on an expensive currency EURGBP

0,0001h100 000 = £ 10, or about 15.15 US dollars.

As you can see, the Forex pip value affects several indicators - the quote currency, the number of characters in the quotation and the amount of forex lots.

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