Phabbyfundz
Active member
Currency pair quotes may seem confusing at first, but reading them is actually pretty straight forward. For an example the EUR/USD quote of 1.1302 shows how much one euro (EUR) is worth in US dollars (USD). This means that one euro is worth 1.1302 US dollars the base currency is always the first one listed in the pairing.
Price interest point PIP represents the smallest change in a currency pair. Typically, it is the fourth decimal point, although many brokers quote using the fifth decimal point.
However, the fifth decimal point doesn't always affect the price as it changes really quickly.
Currency pairs that include the US dollar, a PIP is 1/10,000 of a dollar whereas the currency pair includes a yen, a PIP is 1/100 of a yen because a yen is closer in value to 1/100 of other major currencies .
Price interest point PIP represents the smallest change in a currency pair. Typically, it is the fourth decimal point, although many brokers quote using the fifth decimal point.
However, the fifth decimal point doesn't always affect the price as it changes really quickly.
Currency pairs that include the US dollar, a PIP is 1/10,000 of a dollar whereas the currency pair includes a yen, a PIP is 1/100 of a yen because a yen is closer in value to 1/100 of other major currencies .
