What Are Pips?

Some brokers are now starting to quote the other major currencies to five decimal places. Rationally this should mean that one pip would be 0.00001 currency units, but the potential there for bafflement is massive, if a pip would be worth 10 times as much with some brokers than with others. This enables easy comparison of one trade with another so that you can guage a system. It also implies that traders can debate their ends up in a forex forum without revealing the dimensions of their account or their profits in bucks and cents.

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