What is a Pip on MetaTrader 4?

The pip format for four decimal points currency quotes in MetaTrader 4 is shown below. The example explains how to read a forex currency quotes and calculate the forex pip movements using the MetaTrader 4 platform.

Example: for 4 decimal Points Currency Quotes Format

If EURUSD moves from 1.4500 to 1.4501 then this move is equal to:

1.4501-1.4500 = 0.0001 (1 pip)

Value of = 0.0001 USD

1 standard contract = $100,000

Value of 1 pip for 1 standard contract = 100,000* 0.0001= $10

1 pip = $10, for 4 Decimal Points Format

4 Points Decimal Currency Quotes Format in MetaTrader 4 - Forex Trading Pips