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Difference between point and pips

hi, please can someone tell me the difference between point and pips because i am really lost when read this two words thanks


  • denisw100denisw100 Posts: 10
    Did i post in the wrong section?
  • The_Geek_MHThe_Geek_MH Posts: 860 mod
    points probably refers to percentage points, as in an asset moved 3 points or 3%, but may possibly refer to pips. Pips are the decimal places they use to track forex trading exchange rates like the euro/usd goes to 4 pips 1.1555 etc. while the usd/jpy only goes to two 110.55 etc... capiche?
  • denisw100denisw100 Posts: 10
    Thanks The_Geek... for your explanation, so we only use pips on forex?
  • The_Geek_MHThe_Geek_MH Posts: 860 mod
  • denisw100denisw100 Posts: 10
    okay i see
  • YozshujindYozshujind Posts: 87
    The value of the smallest possible change of the quote value is called a point. In other words, the change in pips is equal to the change of the last decimal point in the quote. For example, if the EUR/GBP currency pair has changed in value from 0.7236 to 0.7239, they say it has grown by 3 points. Or if the currency pair USD/JPY has changed in value from 116.18 to 116.11, they say that it has decreased by 7 points. Sometimes points are called pips. PIP is percentage in point. Measuring changes in quotes in points allows drawing parallels between close assets with different sizes. So, depending on the context, the value may be slightly different. In some cases, point and pips are the same, but in others they are different.
  • denisw100denisw100 Posts: 10
    thanks very much Yozshujind, very explicit your explanation
  • HulapointikHulapointik Posts: 46
    For currency pairs a pips or forex point usually acts one decimal American dollar. Also 1 pips can be equated to one base point or one hundredth of a percent. A unit of one pip at Forex is a small indicator of change in a particular currency pair. That is, it is the minimum price change for a currency pair or another asset in the Forex market.
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