Permalink on NGINX

My blog is in a folder called /wp/
http://www.sectioneighty.com/wp

I want to let it live in that folder, but have it appear as if its in the root folder. My understanding is that I am required to copy the index.php file to the root directory and edit it to call from the /wp/ folder. I did that and the blog loads great.

The only problem is, permalinks no longer work. There’s no .htaccess as far as I’m aware with NGINX so I don’t know what to do. The permalinks WILL work if I include /wp/ in the permalink structure, but I want my articles to appear as if they’re in the root folder like in this how-to video:

When following those instructions, the blog loads fine but articles don’t open. Not sure what to do.

Thanks for your help.