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What is a pip?

A pip, which stands for percentage in point, is a unit used to track small changes in price. In forex, most currency pairs move in steps of 0.0001, which equals one pip. For pairs with the Japanese yen, a pip is 0.01. Traders use pips to measure price changes, spreads, and profit or loss.

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  • What is liquidity?
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  • What is a margin call?
  • What is a spread in trading?
  • What is a pip?
  • What is leverage?
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