Pipettes in Forex Trading


-A Forex Trading Perspective-
Having taken a closer look at PIPs and how to calculate them (Calculating PIP value in Forex Trading), it is necessary that we take a glimpse at Pipettes.

While a PIP is commonly regarded as smallest fraction currency pairs can move, some brokers saw the need to provide an even smaller “more accurate” fraction in the name of Pipette.

A Pipette is a fractional Pip.

So given the increasing popularity of Pipettes, some Brokers have started to provide pairs with 5 decimals (for normal/USD based pairs) and 3 decimals (for JPY based pairs).

A Pipette is one tenth (1/10) of a PIP, which represents a fraction of one in a hundred thousand (1/100,000).
 Simply put, 10 Pipettes = 1PIP.
I
n all, very few Forex traders currently use Pippets in their trades, so we will not dwell much on it.

OJ Mwale – Sani Global
Further knowledge/Resources:
https://tinyurl.com/yaejznhe
https://tinyurl.com/ycorvq5m
https://amzn.to/2L9owyi

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