Forgive my ignorance but I just need quick explanation on a specific question relating to spreads.
I was comparing spreads, but here is my problem. I thought a pip was the last digit of a currency pair, so when I was comparing spreads different brokers were offering different spreads on the same pair no problem so far except I got little bit confused which spread is better, give you example:
Broker A: 0.9 GBPUSD
Broker B: 1 GBPUSD
Broker C: 1.8 GBPUSD
Broker D: 0.4 GBPUSD
Now in terms of numerology 1 is a whole number greater than a fraction number of 0.4, but pips represent points, "pip" stands for "percentage in point," or a percentage of the smallest currency unit. So I'm trying to get my stupid head around this, If I buy 1 lot GBPUSD at 1.5820 and the spread is 0.4 and the market moves 4 pips up, does that mean have paid the spreads?
I was comparing spreads, but here is my problem. I thought a pip was the last digit of a currency pair, so when I was comparing spreads different brokers were offering different spreads on the same pair no problem so far except I got little bit confused which spread is better, give you example:
Broker A: 0.9 GBPUSD
Broker B: 1 GBPUSD
Broker C: 1.8 GBPUSD
Broker D: 0.4 GBPUSD
Now in terms of numerology 1 is a whole number greater than a fraction number of 0.4, but pips represent points, "pip" stands for "percentage in point," or a percentage of the smallest currency unit. So I'm trying to get my stupid head around this, If I buy 1 lot GBPUSD at 1.5820 and the spread is 0.4 and the market moves 4 pips up, does that mean have paid the spreads?