Pip in Forex
A clear definition of Pip, with practical context for reading markets and making better trading decisions.
Definition
A standard unit for measuring a small move in most currency pairs - usually the fourth decimal place. Pips describe distance, not money by themselves.
Practical forex example
A move in EUR/USD from 1.1000 to 1.1001 is one pip.
Why Pip matters
Understanding Pip helps traders interpret market information, plan decisions, and manage risk with more context.
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