Daily Point 2001 - Pip

 

The Banking Tutor

Daily Point 2001

Pip 

Generally the lowest and smaller increment in which a currency pair is priced. Pips are used to measure movement in a forex pair. Pips prices are subject to change and can be moved due to the timing of the trade and the amount that is being traded. 

Typically, it refers to the last decimal or digit of the instrument price. 

For example, the price of GBP/USD is 1.42630 / 1.42650 (Sell/Buy). If the price of GBP/USD moves to 1.42670 / 1.42690, this is a movement of 0.00040 or 40 pips. 

Sekhar Pariti

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