Forex

Home     Previous lesson   Next lesson    I think you have done with first lesson. If so this is the time to head into the next lesson. I named it as More than introduction, because it is a part of introduction but it is bit advanced than an introduction. Here I am going to discuss about Pips and Leverage. What are PIPS A "pip" is the smallest unit of a any currency pair. Because of this, that is the smallest currency value can be moved up or down in Forex market. Just see an example. Eg: In GBP/USD currency pair, an increment from 1.2675 to 1.2676 is a 1 pip. That mean if the value moves by 0.0001 is known as a movement of one Pip.  But there are exceptions like USD/JPY, changing of it's value is considered only up to second decimal point. So  movement of 0.01 is known as one pip in USD/JPY.  Lets see what is the important of a Pip. The profit is calculated by amount of pips you have earned during a one trade. To calculate these we need to know "Pip Value&quo