What is a pip?
How traders measure moves
Traders never say dollars first. They say pips. Here is what a pip is.
Pip size
| EUR/USD | 0.0001 = 1 pip |
| USD/JPY | 0.01 = 1 pip |
| Gold | 0.10 = 1 pip |
A pip is the smallest standard move. On euro dollar it is the fourth decimal. On gold, ten cents is one pip.
Gold example
| Buy at | 3,880.00 |
| Close at | 3,885.00 |
| Move | +50 pips |
So if you buy gold at 3,880 and close at 3,885, that is plus 50 pips.
Quick quiz: Gold moves from 3,900 to 3,890. How many pips?
- A: 10
- B: 100
Answer under the YouTube lesson - we read every comment.
Learn it, then trade it with signals.
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GOFX AI scans gold around the clock and sends setups with entry, stop loss and take profit to your phone - every win and loss published.
Trading involves risk. Lessons are for education, not financial advice.