Saturday, 21 March 2009

Forex Pips ?

A forex pip is the smallest increment for any currency pair.

Prices are quoted to the fourth decimal point in the forex market, for instance, EUR/USD might equals to 1.2339. This means that a single pip equals the smallest change in the fourth decimal place, and that is, 0.0001.

There is an exception for the Japanese Yen (JPY), and it is, that JPY is quoted only to the second decimal point, no matter in what currency pair it takes part.