reference · Forex & currencies
Pips, Points and Ticks: Convert Price Distances Without a Factor-of-Ten Error
A pip is a market quotation convention, a platform point is a configured price unit, and a tick is a permitted price increment or a data update depending on context. Read the instrument's definitions before converting any distance.
Key points
- Price distance divided by the selected unit gives a count of that unit.
- Display decimals do not establish every instrument's tradable tick size.
- A tick's money value also depends on the contract and quantity.
Scope and assumptions
- The FX example explicitly sets pip size to 0.0001 and point size to 0.00001. These values are example inputs, not a rule for every currency pair, CFD or broker.
Write down the unit before the number
An instruction such as “move the stop by 20” is incomplete. It could mean 20 pips, 20 platform points, 20 ticks or 20 whole price units. Each interpretation can produce a different order price. MetaQuotes lists point size and trade tick size as separate symbol properties, while Spotware's Symbol API exposes pip and tick sizes.
The general conversion is unit count = absolute price distance ÷ unit size. The denominator must be expressed in the same quoted-price units as the numerator. A later conversion to money requires another input.
One FX move, two correct descriptions
Suppose a hypothetical quote moves from 1.10000 to 1.10125. Set the pip size to 0.0001 and the platform point to 0.00001 for this example.
| Unit | Calculation | Result |
|---|---|---|
| Pips | 0.00125 ÷ 0.0001 | 12.5 pips |
| Platform points | 0.00125 ÷ 0.00001 | 125 points |
Both answers describe the same move. Substituting 125 into a setting expecting pips makes the intended distance ten times larger. Merely formatting the price to five decimal places does not resolve which unit a setting expects.
If the position contains 20,000 base-currency units and the price is quote currency per base unit, one 0.0001 pip is 20,000 × 0.0001 = two quote-currency units. The example move is therefore 12.5 × 2 = 25 quote-currency units before costs. An account in another currency needs the appropriate conversion.
Futures points and ticks
For a contract with a 0.25-point tick, one full index point contains four ticks. A 1.50-point movement contains six ticks. If the contract multiplier is $5 per point, one tick is $1.25 per contract and that movement is $7.50 per contract. Those are the arithmetic relationships behind the MES comparison, using CME's Micro E-mini specifications.
Do not transfer these numbers to another product merely because both charts display two decimal places. Its multiplier, tick increment and quoting convention can differ.
A conversion check before execution
Record the original absolute price, intended distance and named unit. Convert the distance into an absolute destination price, then validate it against that destination's tradable price grid. Recalculate money exposure with its contract size and quantity.
For automation, log both the input unit and the final accepted price. A label such as “points” can have different meanings across systems; an explicit price difference is easier to audit. The symbol-mapping guide explains the broader instrument comparison, but matching names alone cannot establish matching units.
For a spreadsheet, label columns with both quantity and unit: “stop distance, pips” and “pip size, quote units” are clearer than “stop” and “size.” Multiplying these columns should reproduce the intended absolute price distance before any order quantity enters the calculation.
Questions and answers
Are ten points always one pip?
No. That relationship holds when the configured point is one tenth of the chosen pip unit. Other instruments and quote conventions can use different relationships.
Is a tick always a price move?
The term is also used for a data update. A feed tick and the instrument's minimum tradable price increment are different concepts; establish which meaning a specification uses.
Why does the same pip distance produce different P&L?
Position size, contract size, quote currency, conversion and instrument calculation rules determine money value. The price distance alone does not determine the account result.
Sources and further checks
Use the current source for your exact instrument, account and platform. Referencing a general specification does not establish support for every TradeCopier workflow.
- MetaQuotes: Symbol Properties · Checked September 19, 2026
- Spotware: Symbol API · Checked September 19, 2026
- CME: Tick Movements · Checked September 19, 2026
- CME: Micro E-mini Equity Index Futures Overview · Checked September 19, 2026
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