Foreign Exchange Terminology

  • What is pip?

    For the foreign exchange, the smallest pip is 1/10000, which means as the fourth decimal place. In case of EUR/USD, if the spread is 3, then the exchange rate can be like 1.2500/1.2503. In the currency pairs, the Japanese yen is the only exception. The exchange rate for USD/JPY only has two decimal place. For example, for the spread with 3, the exchange rate can be like 114.05/114.08. PIP means the smallest unit of the price. For EUR/USD, if the spread is 1 pip, the rice may be 1.2500/1`.2501.

  • What is the spread?
  • What is cross trade?
  • What is Foreign Exchange?
  • What is the margin rate?
  • What is leverage?
  • What is overnight?
  • What is swap rate?
  • What is the difference between "Day Trading" and "overnight trade"?
  • What is the unit of CFD?
  • What is net?
  • What is available margin?
  • What is a stop-loss price?