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.
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...