2. If a Trader Buys @ 1.2847 and Sells @ 1.2867 We can see that the trader made 20 points, or 20 pips profit.
3. This is calculated as follows 1.2867-1.2847=0.0020; Therefore 1 pip=0.0001 and on a 100,000 EUR/USD position 1 pip is worth $10.
4. In a Crude Oil trading position where the market rate is 76.12 one pip is 0.01.
5. Therefore a pip is equal to the last decimal point shown on a forex rate. The value of 1 pip in Crude Oil for a 100 position can be calculated as follows: 100*0.01= 1 USD.