What is a Pip ?
A Pip short for "Percentage in Point" or "Price interest Point" Represents a tiny measure of the change in a currency pair in the forex market. It can be measured in terms of the quote or in terms of the underlying currency.
A pip is a standardized unit and is the smallest amount by which a currency quote can change. It is usually $0.0001 for U.S. -dollar change. whichs is more commonly refered to as 1/100th of 1%, or one basis point. This standarized size helps to protect investors from huge losses for example if a pip was 10 basis points a one pip change would cause greate volatlitliy in currency values.
Understanding Pips
Assume that we have a USD/EUR direct quote of 0.7747. What this quote means is that for US$1, you can buy about 0.7747 euros. If there was a one-pip increase in this quote (to 0.7748), the value of the U.S dollar would rise relvative to the euroz, as US$1 woyuld allow you to buy slightly more euros
A Pip short for "Percentage in Point" or "Price interest Point" Represents a tiny measure of the change in a currency pair in the forex market. It can be measured in terms of the quote or in terms of the underlying currency.
A pip is a standardized unit and is the smallest amount by which a currency quote can change. It is usually $0.0001 for U.S. -dollar change. whichs is more commonly refered to as 1/100th of 1%, or one basis point. This standarized size helps to protect investors from huge losses for example if a pip was 10 basis points a one pip change would cause greate volatlitliy in currency values.
Understanding Pips
Assume that we have a USD/EUR direct quote of 0.7747. What this quote means is that for US$1, you can buy about 0.7747 euros. If there was a one-pip increase in this quote (to 0.7748), the value of the U.S dollar would rise relvative to the euroz, as US$1 woyuld allow you to buy slightly more euros
تبصرہ
Расширенный режим Обычный режим