What is a Pip in Forex? Your Key to Profitable Trading
Learn to Trade in 5 Days What is a Pip in Forex? Your Key to Profitable Trading A pip is the heartbeat of Forex trading, measuring price movements to determine your profits or losses. After seven years of trading and millions in profits, I’ve mastered using pips to calculate precise trades, generating $1,000–$1,500 weekly in the $6.3 trillion Forex market. In this guide, I’ll explain what a pip is, how to use it with Price Action Trading, and why discipline matters, plus a real trade example to show pips in action. Get my 5-Day Trading Mini-Course 1. What is a Pip in Forex? A pip, or “point in percentage,” is the smallest unit of price movement in a currency pair, typically the fourth decimal place for most pairs (e.g., 1.2000 to 1.2001 is 1 pip). Key Facts About Pips: Definition: A pip measures how much a currency pair moves up or down, like units or cents in everyday measurements. Example: If EUR/USD moves from 1.2000 to 1.2007, that’s 7 pips. If it...