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Pips
In forex trading, the change in the value of a currency pair is measured by a standardised unit called a “pip”. A pip is the smallest unit price move that a currency pair can make, and refers to the fourth decimal place.
The Japanese yen is an exception, as its exchange rate sits at two decimal places.
Learn more about lot size, pips, and risk-to-reward ratios in our article to better understand lot sizing and pip calculations.
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