AI Hub 16 September 2023 How Can I Compute the Worth of a Single Pip in Forex Trading? The worth of a single pip in forex trading is one of the most important concepts to understand when it comes to foreign exchange. A pip is the smallest unit of price movement for any currency pair and is typically equal to one basis point, or 0.0001. It can also be measured in terms of the quote or counter currency. For example, if the EURUSD moves from 1.1250 to 1.1251, that would be a one-pip move. When it comes to computing the worth of a single pip in forex trading, there are two main methods: calculating the value per pip and calculating the dollar value per pip (or “dollar-based”). The first method involves multiplying your position size by 0.0001 and then dividing by your exchange rate (for example, if you...