In Forex trading, pip value is considered as first key to know about. A PIP is a unit of measurement for currency movement and is the fourth decimal place in most currency pairs.
For example, if the EUR/USD moves from 1.1001 to 1.1002, that’s a one pip movement.
LDN Global Markets provide to its clients fractional pip pricing, so you’ll also see a fifth decimal place such as in 1.10011, where the 5 is equal to five-tenths of a pip, or five pipettes.
How much of a profit or loss a pip of movement produces depends on both the currency pair you are trading and the currency you funded your trading account with.
Pip value matters because it affects all your Profits and Losses. If you don’t know how much a pip is worth, you can’t precisely calculate the ideal position size for a trade and you may end up risking too much or too little on a trade. Using the Pip Calculator will help you to know all these details.
We wish you a successful trade with LDN Global Markets.
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