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Pip

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Description

Acronym for ‘percentage in point,’ representing the smallest price move in forex markets.

A pip, short for ‘percentage in point,’ is the smallest increment by which an exchange rate can change in forex trading. It’s vital for calculating gains or losses in trades, with most currency pairs moving in pips of 0.0001, though this can differ for yen pairs where it’s 0.01. Understanding pips is fundamental to forex trading strategy and risk management.

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