What Are Pips in Forex Trading and how is it calculated?
Understanding Pips in Forex Trading
A pip is a measure of movement in currency pairs, representing the last decimal place in the exchange rate of the pair.
For example, if the exchange rate of the USD/CHF pair moves from 1.0700 to 1.0701, it means the pair has increased by one pip. If the rate moves from 1.0700 to 1.0710, it indicates an increase of 10 pips. Similarly, if the price moves from 1.0700 to 1.0600, it signifies a decrease of 100 pips, and so on.
This lesson explains in detail how to measure the movement of currency pairs through pips.
Enjoy the lesson!
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