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What is a Forex “PIP” and Why is it Important for Trading?

By blujam On September 17, 2010 Under Forex Invincible Review

PIPs are very important in the forex market. If you’re new to forex, it’s a word you’ll be hearing often; as it’s that one little word which literally makes to forex world turn; but what does it mean?

PIP is short for percentage in point, and refers to the smallest shift a price can make on the trading market. It is generally the last decimal place you see on a typical forex quote. In most currencies, a PIP is 0.0001. There are some currencies like Japanese Yen however, that have two decimal places, so having a currency pair with Yen as

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