What Is Pip Value In Forex Trading?
This is a term you will see very often when trading Forex. Another word for “Pip” is what’s known as the “Tick Value”, and it stands for “percentage in point”. A pip is the smallest increment of change in price for a currency. Most major currency pairs are priced to four decimal places, such as 1.5795. In this case, if the price changes from 1.5795 to 1.5796, then it changed 1 pip.
It can be fun to check out the Pip value so that you’ll know approximately how much you’re earning within those few seconds and because it is mainly used in currency futures, you may notice why the Pip are almost always fixed. Can this be a reason why so many traders and investors are moving away from currency futures to spot forex trading? Or Is it because the commissions charged by brokers are just too high?
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June 19th, 2008 at 5:32 pm
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July 4th, 2008 at 6:11 pm
I understand this article now, just sometimes I read so fast everything and I miss things that after I read them again, I can understand it better..;). Blog Stumbled up and Bookmarked, so I keep updated on every article you write from now on.
July 5th, 2008 at 12:52 am
Thanks for visiting! Sometimes we do have to slow down to understand the meaning of something. This is especially true in the foreign exchange market. Glad you liked the article and I’ll see you soon.
Ruth
September 14th, 2008 at 4:54 pm
Hi - just wanted to say good design and blog - cu Ronny R.