What does Pip Mean in Forex Trading?
Newly-entered forex traders often hear the word "pip". If you too have just entered the market, then you may also be frequently hearing this word. Do you know what it stands for? Do you also know why it is important to understand this word? For all such questions in your mind, our blog will provide you with clear answers. What is Pip in Forex? Veonco , an accomplished forex broker, says that even when you are new to the market, you will understand that forex trading has a lot to do with the changing prices of currency pairs. For calculating these changes in prices, a method is applied. This method is called pip or percentage in point. Through pips, the changes in prices get represented in the form of units. These units can then be changed into several currency values. To make this even simpler for you, when a currency pair's price changes, a pip is used for measuring it. The smallest change which can be made by an exchange rate on the market can be considered as p