How to manually calculate pips?

For those who are unfamiliar, a pip stands for percentage in point and is a unit of measurement to express the change in value between two currencies. It is essential for Forex traders to know how to calculate pips as it helps them determine their profits and losses.

The video explains that if you want to add a pip to a four decimal place current CPA, you will need to multiply it by 0.01. This is because most currency pairs are quoted to four decimal places, and the smallest change in the fourth decimal place is equal to one pip.

The video demonstrates this concept with an example. Let's say the current CPA of a currency pair is 1.2345. If you want to add one pip to this value, you will multiply 1.2345 by 0.01, which equals 0.012345. Then, you will add this result to the original CPA, giving you a new CPA of 1.2341.

It is important to note that the value of a pip can vary depending on the currency pair and the broker you are using. Some brokers may offer different pip values for different currency pairs.

In the video titled "How To Calculate Pips Forex Trading For Beginners" by Solomon King on YouTube, viewers can learn how to calculate a pip in Forex trading.