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Trading Terms

Point/pip

When discussing exchange rates, it is important to mention the last decimal place, also known as the pip. This refers to the smallest unit of measurement used in determining the value of a currency. It is typically one hundredth of a percent, and can significantly impact the overall exchange rate. As such, understanding the role of pips is crucial in the world of finance. So, remember to pay attention to that last decimal place when analyzing exchange rates.
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