What is a Pip

A pip is the unit you count profit or loss in. Most currency pairs are quoted to four decimal places. Watch for more.

A pip is typically defined as the smallest movement an exchange rate can make. Most currency pairs, like the GBP/USD, are quoted to the fourth decimal place, like you see here. Let's look at an example to see what a 1-pip movement would look like for the GBP/USD. Assume that the buy price is currently quoted at 1.5863. If the price then changes to 1.5864, that would be an increase of 1 pip. Likewise, if the price changes from 1.5864 to 1.5863, that would be a decrease of 1 pip.

Not all pairs are quoted to the fourth decimal place, like the USD/JPY, which is typically quoted to the second decimal place. Therefore, in the case of the USD/JPY, a 1 pip move can be illustrated by a price change of 90.93 to 90.94.

It is important to note that FXCM receives prices that are quoted in fractional pips. Fractional pip pricing includes an extra decimal place in the quote, which means the quotes are more precise. For example, we previously mentioned that the GBP/USD is typically quoted to the fourth decimal place. With fractional pip pricing, the GBP/USD is quoted to the fifth decimal place. With FXCM's fractional pip pricing, a price change from 1.58634 to 1.58645, would be 1.1 pips. The more precise quotes allow FXCM to provide you with the best available pricing to it. And for traders, the more precise pricing can mean lowers transaction costs.


Educational Videos: All videos are provided for educational purposes only and clients should not rely on the content or policies as they may differ with regards to the entity that you are trading with. Further, any opinions, analyses, prices, or other information contained on this website is provided for educational purposes, and does not constitute investment advice. Friedberg Direct will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Order Execution Only

Order Execution Only

Regulatory Documents:
IIROC Brochure: How Can I Get My Money Back, How IIROC Protects Investors, IIROC Complaints Brochure, CIPF Brochure, CIPF Coverage Policy, IIROC Order Execution Only Bulletin, Conflict Disclosure Statement

The relationship between Friedberg Direct and FXCM was formed with the purpose to allow Canadian residents access to FXCM's suite of products, while maintaining their accounts with a regulated Canadian firm. All accounts are opened by and held with Friedberg Direct, a division of Friedberg Mercantile Group Ltd., a member of the Investment Industry Regulatory Organization of Canada (IIROC). Friedberg customer accounts are protected by the Canadian Investor Protection Fund within specified limits. A brochure describing the nature and limits of coverage is available upon request or at www.cipf.ca.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)