The percentage of "PIP" represents. To put it simply, PIP is a "point" that we consider in foreign exchange transactions to calculate profits and losses.
When trading a small portion (10K units of currency), each PIP is roughly equivalent to a unit of currency, where your account is priced. For example, if your account is denominated in US dollars, each PIP (depending on the currency pair) is worth about $1.
Of all the pairs involving Japanese yen (JPY), PIP is the 1 digit / 100th bit - the 2 of the decimal point to the right. Of all the other currency pairs, PIP is the 1/10000 bit - the 4 place on the right side of the decimal system.
You will see that the number of PIP is larger font. This makes it easier for them to see.
Additional transparency is provided through most electronic platforms, because each pair of currencies is precisely referenced to one tenth of the PIP.
This part of the PIP allows price providers to further reduce price differentials because they are not limited to citing full PIP increments. This is good for you, because the spread is part of your transaction cost.
You'll notice earlier in this article that we mentioned that a 10,000-unit PIP is worth roughly one dollar in unit currency (or one dollar, if you have a dollar account).
