I have been taking classes and forex for the past week throuvh researchs and guidiance, since then i have been dedicated to sharing these knowledge with everyone so they could learn with me
First classes i had were on “ THE DEFINITION OF THE FOREX MARKET”
I gave the definition of the forex market and explained currency pairs and how they worked, it was an insightful class . If you would love to read it you can click on the link below
HERE.
In our Second class i talked about how we make money on forex, i explained currency values and its exchange rates, how prices flunctuate and the basic concepts of chart flow. You can visit the link below to also view the class
HERE
Well thats pretty much all the synopsis for our past classes.

As usual i would really love an interactive class where i can share my knowledge and each and everyone one of you can add any contributions to the comments below. The way i see it , we are all learners trying to make the best of our shortcomings.
On our third lesson i will be talking about PIPS

PIPS

    /WHAT ARE PIPS?/

PIP is actually an abbreviation, for “percentage in point. It is simply defined as a unit of change in an exchange rate of a currency pair. This is how the forex market moves. We make profit or loss depending on how the trade goes and its shown on the PIPS. We have YEN PIPS AND NON YEN PIPS. Yen is any currency pair thats joined with the Japanese yen they are usually moved into 2 decimal places and non yen any currency pair without the Japanese yen they are moved into 4decimal places
You might probably be confused but let me give an example

I use meta trader 4 demo app for my lessons.

You see those decimal points, the last 4 units after the decimals are what we call PIPS.

Lets use the EUR/USD as an example

EUR/USD

So the price is at 1.2109

.2109 is what we call PIP. Now when trading as it moves , so does your investment. The first value “1”.2109 is usually stagnant. If a change was to actually happen in an instant then just know the market has gone hay wire. Literally 😂. But its highly unlike so its always stagnant. The PIPS are the only values making movements .

So now if you’re counting back 4 decimal places its known as 1 pip
3 decimal places 10
2 decimal 100

1 . 2	1	9	0
......	100	10	10

So lets say the price or EUR/ USD fell

1	. 2	1	9	3 to
1	.2	1	9	2

Youll say it fell by 1 pip.

Let me give another example.
So if the prive of EUR/USD Fell from 1.2190 to 1.2150 youll sau it fell by 10 pips.

1	. 2	1	9	0 to
1	.2	1	5	0

Keep note of the first table i made on each numbers value

Alright lets try a different currency.

AUD/USD

So lets say what if the value of AUD/USD went from 0.7741 to 0.7951

0	. 7	7	4	1 to
0	.7	9	4	1

Looking at this the value went up in the 100th unit so we say it went up by 100pips

YEN PAIRS

Moving over to yen pairs , they are quite different from the regular NON YEN PAIRS ( USD/ EUR/ AUD/GBP etc). Non yen pairs are pair that are not merged with the JPY(Japanese yen). This is becuase the Japanese yen goes in 2 decimal places instead of the normal 4 decimal places as taught above.
Lets use the USD/JPY

USD/JPY

lets assume the current value of USD/JPY is 110.90.
The pip runs this way

1	1	0	. 9	0
PIP=	100	10	1

So lets say the market moved from 110.90 to 110.95. It would mean the market rose by 6PIPS.

Anther example
If the price moved from 110.90 to 112.90

1	1	0	. 9	0
1	1	4	.9	0

It means the market moved by 400PIPS

Its calculation is quite different from that of non yen pips.

Its use the GBP/JPY pair

GBP/JPY

Lets assume it has a value of 130.70 and it move to 130.85

1	3	0	. 7	0
1	3	0	.8	5

We say it moved up by 15 pips.

Assignment

1. using the EUR/USD pair when the price moves from 1.2021 to 1.2121. how many pips did it move
2. using the USE/JPY pair , when the price moves from 110.25 to 113.25 . How many pips didnit move.
   Reply on the comments below tagging @steemingcuration and @spyrex
   I would also love to invite @dayographix and @awesononso to join this contest.

Cc.
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