E. Pip size vs Pip value

Pip size and Pip value are the most misunderstood concepts among novice traders. Sometimes, online articles use these words interchangeably that would confuse readers.

Rather than relying on our own explanation, lets refer a reliable source on this matter.

First, lets look at a Forex pair

source: https://www.myfxbook.com/forex-calculators/pip-calculator/EURUSD

also, lets look at gold

source: https://www.myfxbook.com/forex-calculators/pip-calculator/XAUUSD

Why does this matter?

The copier uses pip size as the standard unit of measurement for trailing stops, fixed SL & TP, range deviation, breakeven pip offset etc. Therefore, it is important not to confuse pip size with pip value.

Since the copier can support any symbol in an MT4 account, Things need to kept simple in order to figure out what a pip size in different asset classes (Forex, indexes, CFD, crypto, commodities etc.)

To keep things simple,the copier uses the number of digits after the decimal point to decide on the pip.

Pip sizes used in the copier,

In 2 or 3 decimal point symbols, pip size is 0.01
In 4 or 5 decimal point symbols, pip size is 0.0001

Examples using pip size

To recap, lets again see what the pip sizes the copier use in relation to the number of decimal points.

Number of decimal points	pip size
2	0.01
3	0.010
4	0.0001
5	0.00010

Example 1:

A EURUSD Buy trade opened at the price of 1.00000

And we are setting
Fixed TP of 100 pips
Fixed SL of 50 pips

this trade will have 
Stop loss = 1.00000 - (0.00010 * 100) = 0.99000
Take profit = 1.00000 + (0.00010 * 50) = 1.00500

Example 2:

A XAUUSD Buy trade opened at the price of 1500.00

And we are setting
Fixed TP of 1000 pips
Fixed SL of 500 pips

this trade will have 
Stop loss = 1500.00 - (0.01 * 500) = 1495.00
Take profit = 1500.00 + (0.01 * 1000) = 1510.00

Why does this matter?

Examples using pip size

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