What is a ‘pip’ in Currency Trading!
In the Forex Market a pip is a very small measure of change in a currency pair.
It is a standardized unit and is the smallest amount by which a currency quote can change.
This is usually $0.0001 for USD (US dollar) related currency pairs, which is more commonly referred to as 1/100th of 1%, or one basis point.
This very small, standardized unit serves as protection for investors. A larger unit would cause extreme volatility in the currency market and potentially huge losses.
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