Forex Pip

The term pip is used in Forex markets to define the minimal measure of the price move. Let’s consider following example: the Euro/USD trading

changes from 1.5000 to 1.5010 so it means that the currency pair changed by 10 pips. Therefore the pip is nothing but the minimal measure used to define the exchange rate of the currency.

It is possible to find out the value of the one pip. But to do this you will need such information as the actual rate of the currency pair, its trading size and leverage used. Consider such example: the USD with leverage of 1:1000 and trading volume of one lot. The minimal pip in this case will be 10 United States dollars.