What is a pip in forex trading?
Standing for Price Interest Point , a pip is the smallest whole increment used in forex trading.
What is a pip?
A "pip" is the smallest whole increment in any forex pair.
For pairs quoted in 3 decimal points a pip increment is based on the second decimal.
For pairs quoted in 5 decimal points a pip increment is based on the fourth decimal, like the EUR/USD below.
EUR/USD: A movement from 1.362(9)8 to 1.363(0)8 is a 1 pip move
In USD/JPY, a movement from 104.4(7)1 to 104.4(8)1 is 1 pip
So how much is a pip worth? This is determined by the currency of your account, the pair you are trading and the position size of your trade.
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