What is pips in trading on Exness

What is pips in trading on Exness?

The term “pip” stands for “percentage in point” or “price interest point.” It represents the smallest standard price movement in a currency pair. In most forex pairs, one pip equals 0.0001. For example, if EUR/USD moves from 1.1000 to 1.1001, that’s a 1 pip movement.

Some Exness instruments use different pip definitions — such as 0.01 for JPY-based pairs or gold — depending on how many decimal places are used in their quotes. For example:

• EUR/USD: 1 pip = 0.0001
• USD/JPY: 1 pip = 0.01
• XAU/USD (Gold): 1 pip = 0.1

For cryptocurrencies, pip structure may vary or be replaced by units or points. On Exness, it’s always best to check the asset specification to understand pip values and calculation rules.

How Pips Are Calculated

Pip calculation depends on:

• The pair’s quote structure (decimal places)
• The lot size
• The currency used in the account
• Market conventions

Let’s break it down with examples.

Pip Structure Table

On Exness, prices for many forex pairs are displayed with five digits (e.g., 1.23456). The fourth digit is the pip, while the fifth digit is called a point or pipette. In this format:

• 1 pip = 10 points (pipettes)

Why Understanding Pips Matters

Knowing how pips work helps you make better decisions:

Benefits:

Profit Calculation: Understand how much you're earning or losing per movement.

Lot Size Planning: Know how trade volume affects pip value.

Risk Control: Use stop-loss levels based on pip distance.

Strategy Testing: Measure strategy effectiveness in pips instead of currency.

Situations Where It Matters:

Scalping and short-term trading

Setting realistic stop-loss and take-profit levels

Backtesting strategies

Risk management with position sizing

How to Monitor Pips on Exness

You can track pip movements and value through the Exness trading platform (MT4/MT5):

• Price charts show pip changes visually.
• Trade terminals display pip-based profit/loss.
• Points vs Pips: One pip = 10 points (in 5-digit quotes).
• Indicators: Some indicators show pip movement directly.

Pips are shown as price differences. In 5-digit quotes, the last digit is a “point” (or pipette), and 10 points = 1 pip. This is helpful for scalpers working with tight spreads or high-frequency trades.

Pip Value vs Lot Size

The value of one pip depends on the lot size. Here’s how it looks for EUR/USD:

Table: Pip Value vs Lot Size (EUR/USD)

Use this to plan how much each pip movement affects your balance.

Practical Example

You open a 0.5 lot buy trade on EUR/USD at 1.1000 with a 30-pip stop-loss.

• Pip value: $5 (0.5 lots)
• Total risk: 30 pips × $5 = $150

So if the price drops 30 pips to 1.0970, you lose $150. This shows how pip size connects to risk and trade size.

Comparison: Pip Impact by Asset Class

Final Thoughts

So, what is pips in trading on Exness? It’s a pricing unit that traders use to measure price changes and plan trades. Whether you’re managing risk, calculating profit, or sizing your trades, pip awareness is a fundamental part of trading on the Exness platform. Knowing how pip values shift with asset types, lot sizes, and quote structures helps you make clear and consistent decisions.

Use pip data in your trading terminal, check instrument specifications, and combine it with tools like the Exness Risk Calculator to stay informed and reduce mistakes.

FAQ

1. What is 1 pip equal to in forex trading on Exness?

   Usually 0.0001 for major pairs, and 0.01 for JPY pairs.

2. Is pip the same for all assets on Exness?

   No, pip size varies by asset class and quote format. Check Exness specifications.

3. Can I change how pips are displayed?

   You can’t change pip units, but chart format and indicators can help visualize them better.

4. How do pipettes relate to pips on Exness?

   One pip = 10 pipettes or “points” in 5-digit quotes.

5. Do Exness calculators include pip values?

   Yes, Exness Risk Calculator helps calculate pip-related position sizes and risk.