Introduction to Pips in Forex

Fill-in-the-blank flashcards covering key points about pips, exchange-rate notation, and currency pair dynamics in forex trading.

“PIP” stands for __.

Percentage in Point

For most currency pairs, a pip is measured at the __ decimal place of the exchange rate.

fourth

For currency pairs involving the Japanese yen, a pip is measured at the __ decimal place.

second

In the quote GBP/USD 1.4605, the digit __ represents the pip.

5

The currency on the left side of a pair is called the __ currency.

base

The currency on the right side of a pair is called the __ currency.

terms

An exchange rate tells you how many units of the terms currency are needed to buy __ unit(s) of the base currency.

one

Buying GBP/USD at 1.4605 and selling at 1.4625 yields a profit of __ pips.

20

When the chart moves up, the base currency is and the terms currency is .

up, down

When the chart moves down, the base currency is and the terms currency is .

down, up