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Strong Buy Buy
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Sell Strong Sell
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Neutral
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Pips and Pipettes

Contrary to what scammers will have you believe, currency rates don’t make drastic moves. Even when a trend forms, usually the upward or downward move is gradual and incremental. To measure these minor moves traders use measures of pips and pipettes.

Pip

A pip is a small incremental move an exchange rate can make. A pip is 1/100th of 1%.

It is sometimes considered to be the smallest and that is not wrong because usually currency rates are measured up to 4 decimal places. However, technically there is one smaller still and it’s called the pipette.

Pipette.

A pipette is a fractional pip and falls on the third or fifth decimal place. It is not as commonly used to quote exchange rates.

The standard unit for measuring exchange rates is pip.

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