Skip links

Tag: Spread

What is a pip in Forex?

The term PIP stands for ‘percentage in points’ or ‘price interest point’ and in simple terms is a unit of measurement which is used to express the change in price between two currencies. Pips are used in forex trading to calculate the spread (difference between the Bid and Ask price)
What is Spread

What is Spread?

When trading Forex or other financial CFDs (contracts for difference) the spread is simply the difference between the bid (sell) and ask (buy) price of the asset. Varying in size between financial instruments, the spread (often quoted in pips on Forex pairs) is one of the costs involved in trading.