Trading Forex: What’s a Pip?

There are a number of different pieces of terminology used in Forex Trading but the interesting thing about that is that the pieces of terminology used in Trading Forex are much less than the pieces of terminology in other forms of trading. When you are trading stocks, there are a number of very specific pieces of terminology that you need to know and to complicate matters those pieces of terminology actually get more complicated as you go from specific stock to other specific stock. The truth is the same for other kinds of trading whether you are dealing with bonds, futures or any other type of trading that goes on during a daily basis. By comparison, Forex is quite simple to understand and in order to understand Forex, one of the first things you need to do is to understand the term Pip. The rest of this article is dedicated to the pip term as it is used in Forex.