Pip

Basics

Qué significa

The smallest price move in forex, usually the fourth decimal place (0.0001) for most currency pairs. It is how forex traders count profit and loss.

If EUR/USD moves from 1.1050 to 1.1055, it rose 5 pips. On a standard 1-lot trade, 1 pip is worth $10, so 5 pips equals $50.

Beginners confuse pips with dollars and place trades far too large. A "small" 20-pip move on a 5-lot position is a $1,000 swing, not $20.

Point — A one-unit move in the price of an asset, most often used for index futures and stocks whe…
Tick — The smallest possible price change for a specific market, and also a single traded transac…