The most common increment of currencies is know as the “pip.” It is the smallest value change in a currency pair exchange rate.

For instance, if the EUR/USD moves from 1.2250 to 1.2251, that is ONE pip. A pip is the last decimal place of a quotation. A positive or negative pip value is how you measure your profit or loss.

Back to Forexpedia Main Page

"Give a man a fish and he will eat for the day. Teach a man to fish and he will eat for a lifetime."
Chinese Proverb
Clicky Web Analytics