Newz Baby|News for the Young at Heart
Feb
27
Filed Under (Finance :: Stocks, Bond & Forex) by admin
The term ‘pip’ means ‘percentage in point’. It is a unit of measurement that describes the smallest possible movement a currency can make, in terms of its value. It is 1/100th of one percent, or four decimal places. Quite interestingly, the Japanese yen is only valued up to two decimal places, as a result of its currency not having gone any revaluation since the end of the Second World War. Foreign exchange traders need to follow pips history very closely if they want to be able to have an idea of whether or not to make certain selling or purchase decisions. For example, if the value of a held currency has been decreasing a few pips every week, one might want to sell their reserves.
