Introducing Mr. Pip.
Have you ever wondered what is this “pip” in an FX quote? Where is this pip if EUR/USD is trading at 1.1020?
The answer is pretty simple. For majority of Forex pairs the pip is the 4th decimal place in your EUR/USD quote.
So it looks like 0.0001.
Yes, the ‘1’ in this quote is our desired ‘the Pip’. As we all know the more pips the better so 0.0018 is equal good 18 pips! And 0.0128 equals all sweet 128 pips!
If you want even more pips then 0.1024 is whole 1024 pips! If they are ‘green’ pips we are in our happy place
So let us go back to our original question. How many pips EUR/USD has?
To answer this one we need to divide the current EUR/USD quote by 1 pip expressed as the decimal number!!!
Let us do it! Grab your calculators and try yourselves!
Number of Pips in EUR/USD= 1.1020/0.0001= 11020 pips!
Alternatively: Number of Pips in EUR/USD= 1.1020*10000= 11020 pips!
So you can move the dot by four decimal places to your right to get the number!
Answer to the Question: When EUR/USD is trading at 1.1020 it has whole 11020 pips in it!