What Are Pips?

Some brokers are now beginning to quote the other major currencies to 5 decimal places. So it seems likely that the pip will stay at 0.0001 units for most currencies.

Most traders record their profit and loss in foreign exchange trading pips as well as in money. This enables straightforward comparison of one trade with another so you can appraise a system. It also means that traders can debate their results in a foreign exchange forum without unveiling the scale of their account or their profits in greenbacks and cents.