211878 Resource 119235 120646 120646 1219842101177 1219842101177 Controlled Forex Trading Terms: Pip

Understanding the pip in currency trading

<font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">One of the forex trading terms you will come across a lot is &quot;pip.&quot; It is important to understand what this term means, since it is one of the more important when interpreting currency market movements.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-weight: bold; font-family: verdana,arial,helvetica,sans-serif;">Pip</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">Pip stands for &quot;percentage in point.&quot; This is the smallest amount a currency can move in the market. With most currencies, the pip change is seen in the fourth number of the quote. If euro/dollar is 1.4785 and changes to 1.4786, it has made a change of one pip.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">The dollar/yen currency pair is the one where the quote is represented by two decimal places rather than four.</span></font><br /> 9 application/xml false currencies currency pair currency trading dollar/yen euro/dollar forex trading forex trading terms percentage in point pip pip currency trading Learn about currency pairs http://www.gftforex.com/land/index.asp?aid=446 Mozilla/5.0 (Macintosh; U; Intel Mac OS X; en-US; rv:1.8.1.16) Gecko/20080702 Firefox/2.0.0.16 127.0.0.1 127.0.0.1 mmarquit 66.182.71.18 false true false false true 119235 blog blogsite/GFTForex/web