PIP

Pip Spread

The pip spread is the difference between the bid and offer prices. The big figure quote is the dealer expression referring to the first few digits of an exchange rate. These digits are often omitted in dealer quotes. For example, a USD/JPY rate might be 117.30/117.35, but would be quoted verbally without the first three digits as '30/35'.

Pips

A pip is the smallest unit of price for any foreign currency. Pips are sometimes also called points. Nearly all currency pairs consist of five significant digits and most pairs have the decimal point immediately after the first digit. For example EUR/USD equals 1.2812. In this instance, a single pip equals the smallest change in the fourth decimal place, that is ...

What is meant by "PIP" as used in Forex terminology?

A pip is the last decimal place of a quotation. The PIP (or POINT) is how we will measure our profit or loss. For example if the EUR/USD moves from 0.9550 to 0.9551 that is 1 Pip. As each currency has its own value it is necessary to calculate the value of a pip for that particular currency. We also want a ...