You will be using pips to determine your profits and losses in the forex market. A pip (percentage in point) or
point is the smallest unit of measurement in the Forex market. Most currency pair quotes are carried out four
decimal places—i.e. 1.4500. The last decimal place is called a pip. For example, if the exchange rate of a currency
pair moved from 1.4500 to 1.4510, we would say that the price moved up 10 pips. You make money when the pips
move your way in a trade.
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