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Forex pips explained: The complete guide to Forex pips
In foreign exchange (forex) trading pip value can be a confusing topicA pip is a unit of measurement for currency movement and is the fourth decimal place in most currency pairs For example if the EUR/USD moves from 11015 to 11016 that’s a one pip movement Most brokers provide fractional pip pricing so you’ll also see a fifth decimal place such as in.
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Understanding pips in Forex is a prerequisite to learning more complicated concepts in trading One of these is the volatility of Forex pairs which is often expressed in the number of pips that a pair moves during a day Cross pairs usually have larger pip movements than major pairs over the course of a day which can be ascribed to relatively low liquidity.
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