What is the relationship between pips and forex in the cryptocurrency market?

3 answers

• Nov 27, 2021 · 3 years ago
  Pips, short for 'percentage in point', are a unit of measurement used in forex trading to quantify the change in value between two currencies. In the cryptocurrency market, pips are not directly applicable as cryptocurrencies are not traded in pairs like traditional forex currencies. However, some cryptocurrency exchanges may use pips as a way to measure the price movement of cryptocurrencies against a specific fiat currency or stablecoin. It's important to note that the use of pips in the cryptocurrency market is not as widespread or standardized as in the traditional forex market.
  589295
• Nov 27, 2021 · 3 years ago
  Pips and forex are closely related in the traditional forex market, where pips are used to calculate profits and losses. However, in the cryptocurrency market, the relationship between pips and forex is not as direct. Cryptocurrencies are traded against other cryptocurrencies or against fiat currencies, and the price movements are usually measured in terms of percentage changes rather than pips. While some cryptocurrency exchanges may provide pip-like measurements for convenience, it's important to understand that the concept of pips is not as widely used or standardized in the cryptocurrency market.
  607203
• Nov 27, 2021 · 3 years ago
  In the cryptocurrency market, pips are not commonly used as a measurement for price movements. Instead, traders often focus on percentage changes or dollar value changes. The relationship between pips and forex is more relevant in the traditional forex market, where pips are used to calculate profits and losses. However, it's worth noting that some cryptocurrency exchanges may use pips as a way to measure the price movement of cryptocurrencies against a specific fiat currency or stablecoin. Overall, the relationship between pips and forex in the cryptocurrency market is not as significant as in the traditional forex market.
  631158