What is a pip in forex trading?

Solution
In forex, a pip is a measure of price movement. Thus, if one exchange rate moves 100 pips and another 300 pips in one day, the second exchange rate will have displayed a bigger movement.

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The word pip is an abbreviation for percentage in point. A pip is usually equal to 0.0001 in exchange rates of the USD and many other pairs. Many brokers also show you parts of a pip when trading, i.e., a fifth decimal number 0.00011.

Usually, traders measure their trading performance by calculating the number of pips they managed to catch in a single day, week, or month. Many signal providers promise to deliver a minimum number of pips per month, for example, 1000 pips per month.

Using pips is helpful in that it helps benchmark...
Lovely picture! A pip is the smallest price move that a given exchange rate can make based on market convention in forex trading. It stands for "percentage in point" or "price interest point.":)
 
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