A Point in Price - PIP for short is a measure of the change in the exchange rate of a currency pair. It is the smallest unit of measurement we use when trading currencies.
Most currency pairs are measured to five decimal places.
For pairs like EURUSD (Euro U.S Dollar), GPBUSD (Pound U.S Dollar), etc. A pip corresponds to the fourth decimal digit.
Yen-based currency pairs like USDJPY (U.S Dollar Japanese Yen) are the exception and are measured to the three decimal places. The pip value is shown in the second decimal digit.
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