what is pips in forex
Pips are the smallest unit of price for any currency
A pip is typically equal to 1/100th of a percent, or one basis point
In foreign exchange (FX) trading, pips are the smallest increment that an exchange rate can make
For example, if the EUR/USD currency pair is trading at 1.0950, then one pip would be 0.0001 (1/100th of a percent, or one basis point)
If the price of the EUR/USD moves to 1.0951, then that would be a one pip move
Pips can be used to measure price movements in any currency pair
Most FX pairs are quoted to four decimal places, so one pip is equal to 0.0001
However, there are a few exceptions, such as the Japanese yen pairs (USD/JPY, EUR/JPY, etc.)
which are quoted to two decimal places. In this case, one pip is equal to 0