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What is a Pip?

Price interest point (pip) measures the smallest unit of change in a financial instrument’s price. Typically, it refers to the last decimal or digit of the instrument price.

Pip Examples:
The price of GBP/USD is 1.42630 / 1.42650 (Sell/Buy). If the price of GBP/USD moves to 1.42670 / 1.42690, this is a movement of 0.00040 or 40 pips.

The price of Germany 40 is 12373.58 / 12374.43 (Sell/Buy). If the price of Germany 40 moves to 12373.88 / 12374.73, this is a movement of 0.30 or 30 pips.

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