What is a PIP?
A Forex Pip stands for “percentage in point”.
Technically speaking, this percentage in point will represent the smallest value of measurement for currencies on the forex market and is the 4th decimal point in the forex market.
The easiest way to explain this is using the following example:
A bid might be at 1.203 and offered at 1.207. The spread in this is 4 pips wide.
The Japanese Yen is an exception to this rule and is only quoted to the second decimal point.
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