A pip (percentage in point) is the smallest price movement in a currency pair. It is typically the fourth decimal place in most currency pairs. For example, if EUR/USD moves from 1.1000 to 1.1001, that’s a 1-pip movement.
However, for currency pairs involving the Japanese yen (e.g., USD/JPY), a pip is represented by the second decimal place. For instance, if USD/JPY moves from 110.00 to 110.01, that’s a 1-pip movement.
Understanding pips is essential for calculating potential profits or losses in Forex trading.
However, for currency pairs involving the Japanese yen (e.g., USD/JPY), a pip is represented by the second decimal place. For instance, if USD/JPY moves from 110.00 to 110.01, that’s a 1-pip movement.
Understanding pips is essential for calculating potential profits or losses in Forex trading.