Glossary

Pip

The conventional smallest price step of an instrument. Its size differs: 0.0001 for EUR/USD, 0.1 USD for gold and 1 point for index CFDs in our ledger.

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A pip is a conventional unit of price movement. Its size depends on the instrument, so the same number of pips means different things on different markets.

Example

EUR/USD moving from 1.1650 to 1.1675 is 25 pips. Gold moving from 3,650.0 to 3,652.5 is also 25 pips in our ledger (pip = 0.1 USD), but that is a much smaller move relative to gold's usual daily range.

Why it matters

Adding pips across instruments produces a large number with no meaning. That is why our headline results are in R and pips are shown only for reference.

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