Hi folks,
On gold (XAU/USD) going from say 640.00 to 641.80 is that classed as 180 pips? or 1.8pips?
Generally people quote how well they are doing as pips lost or made per month or day.

If this spread is quoted with 180 pips, it is not really much.

Can someone explain how the rule works?

Francesco

Learning the Forex trading terminology is a bit tough at first, I found this on the Forex FAQ page a pretty good definition:

"Q. What is a Pip
A.  A pip is a smallest amount of change in price. In forex, many pairs are measured to the 4th number to the right of the decimal point (i.e., 1.3245 for EURUSD). Using this example, when prices move from 1.3245 to 1.3246, that is one pip. This is the equivalent of a tick in futures and cents in stocks."

Hi

Thanks for your explanation about the PIP's this is really easy to understand, and it looks like in the forex trade, there are too many people, which do not know about this business. I am here to learn, and I appreciate every comment.

Francesco