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What is a Forex Pip and how to calculate them?

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  • What is a Forex Pip and how to calculate them?

    If you've done even the slightest bit of research into the Forex (FX) market than you've probably heard of the terms pips, pipettes, and lots thrown around a lot. If you are new to trading currencies this may all seem extremely confusing and alien-like terms. We put this guide together to explain what pips are and show you how pip values are calculated. By the end of this guide, you will have a solid understanding of what a forex pip means.

    This guide provides a quick overview of the fundamentals of forex pip values, forex pip meaning, what a pip is and how to calculate profits and losses in pips.

  • #2
    A pips is the abbreviation of the two words "percentage" and "point". Pips can be defined as a percentage point, which represents the minimum price variation on the Forex currency exchange (1/100 percent). This popular exchange instrument helps to quickly record the slightest changes in quotations. At the same time, a pip serves as a rate refinement starting from the fifth decimal point.