Glossary Term


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Pip stands for ‘percentage in point’ and refers to one ten thousandth of a currency’s value (i.e the fourth decimal place). Traditionally this fourth decimal place was the smallest increment by which a currency pair could fluctuate in value, however, with the advent of ‘precision points’ which are calculated to the fifth decimal place, most currency values now go down to a tenth of a pip. The main exception to the above is the Japanes yen, which has traditionally been calculated to two decimal places and has since been extended to three.

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What is pip? A Traders Expert explanation

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