Hi

 I'm really sorry if this has been answered before.  It is very basic.  I just can't seem to find an answer easily in the forum.

 Firstly, I want to understand pips.  My reading leads me to believe that they are 1/100th of a percent of the quote currency.  This is true for most currencies.  Exceptions are when the quote currency is a lot 'smaller' eg JPY.

 The number of decimals expressed in the trading platform doesn't necessarily reflect what a 'pip' is.

So, from the example at http://www.trade2win.com/media/knowledge/phil-newton/sept-02-04_8am_BO.html , the aim is to make a 'profit' of 36 pips.  I presume you then take the spread off this, eg 4 pips, to take it down to 32 pips.  My understanding is that you then divide this by the cross rate, in this case eg 133 to get the amount of the base currency you make per pip.  ie .32/133 = .0024.  So this means you make .0024 of a GBP per pip movement per pound traded.  Therefore, if you traded GBP100,000, you would make GBP240.

So, can you please go through the above and correct my mistakes to clarify for me how to understand pips and their translation into base currency.

 Kind Regards

MacMan