Written by :
Traderslog.comA pip is the smallest price increment in forex trading - pip stands for percentage in point.
Prices
are quoted to the fourth decimal point in the forex market - for
example EUR/USD might be bid at 1.1914 and offered at 1.1917. In this
example we can see that the spread is 3 pips wide. The Japanese Yen
(JPY) is an exception - it is quoted only to the second decimal point.