What is a “pip” for CFDs?

A pip is the increment FXCM uses to account for profits and losses. It is the standard used in the Forex market, in place of "points" or "ticks". On Forex instruments, the "pip" is the second-to-last digit in a price quote. For CFD products, the "pip" is the last digit in a price quote.

The value of a pip depends on both the CFD product that you are trading, the currency your account is denominated in, and the size of your trade. You can view the current pip value of any instrument in your account in the Dealing Rates window, in the Pip Cost.

The Pip Cost shows how much profit or loss 1 pip is worth if holding 1 CFD of that instrument. It displays in the currency your account is denominated in. Since FXCM accounts for profits and losses in pips and automatically adjusts profits and losses into your account's currency, you can trade stock indices in many countries without needing to keep accounts in those countries' different currencies. The Trading Station makes all the conversions for you.