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What is difference between old and new pips in Forex?

April 13, 2025 by Michael 1 Comment

what is difference between old and new pips in forex

In various Forex forums are a lot of specific jargon, often not understandable for beginners. The talk is about old and new pips. What does that mean?

By old pips called the minimum price change given by the broker with 4 digits after the decimal point (eg. EUR / USD 1.3285), by the new pips - with 5 digits after the decimal point (eg. EUR / USD 1.32850.)

The reason is that different brokers use different quoting systems, but the meaning is the same. From the school we know that 0.01 = 0,010 = 0.0100 = 0.01000

EUR / USD 1.3285 = 1.32850

Therefore:

1 old pip (4 digit) = 0.0001

1 new pip (5 digit) = 0.00001

To avoid confusion, in Forums, various courses, books, monitorings, and so on, is generally accepted to indicate all in an old points (4-digit). For example, if a trader says that his Stop-Loss is 50 pips, it is calculated in old pips, and if you want to say in new pips - it will be 500 pips.

Take care and have a nice day.

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Posted in: Forex for Beginners Tagged: pips forex
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