How does the meaning of pips in forex relate to cryptocurrency?

3 answers

• Nov 24, 2021 · 3 years ago
  Pips, short for 'percentage in point', are a unit of measurement used in forex trading to quantify price movements. In the context of cryptocurrency, pips are also used to measure price changes, but the calculation may vary depending on the specific cryptocurrency exchange. For example, on some exchanges, pips are calculated based on the last decimal place of the price, while on others, they may be calculated based on a percentage change. It's important to check the specific rules and guidelines of the cryptocurrency exchange you're trading on to understand how pips are calculated and how they relate to price movements.
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• Nov 24, 2021 · 3 years ago
  When it comes to pips in forex and cryptocurrency trading, the concept is essentially the same. Pips represent the smallest unit of price movement and are used to measure gains or losses. However, it's worth noting that the volatility in the cryptocurrency market can be much higher compared to the forex market, which means that price movements in cryptocurrency trading can be more significant. This increased volatility can result in larger pip values and potentially higher profits or losses. It's important to consider the specific characteristics of the cryptocurrency market when applying forex trading concepts like pips.
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• Nov 24, 2021 · 3 years ago
  In the context of BYDFi, a cryptocurrency exchange, pips are calculated based on the last decimal place of the price. This means that a pip represents a one-unit movement in the last decimal place of the price. For example, if the price of a cryptocurrency pair changes from 0.0010 to 0.0011, the movement would be one pip. Understanding how pips are calculated is crucial for effectively managing risk and determining profit potential in cryptocurrency trading. It's always recommended to familiarize yourself with the specific rules and calculations used by the exchange you're trading on to make informed trading decisions.
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