What is a Pip or Point | Trading Terms

It might seem logical what a point or pip is in trading but some traders, especially new ones can get confused about the meaning of the term. This video sheds light on the exact definition of the terminology and what it represents.

Different examples of currencies with two, four and five digits after the decimal are included so that you can see what represents a pip. Stocks are also discussed and presented, as they make up a sizeable portion of the trading world.

Real examples on the chart are also shown, so that you can place them in context and see how they are used when talking about trades, targets and their role in the whole trading process.

If you want to ask a question or have a trading term you don’t understand – comment below and we’ll do our best to get back you.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.

[Seafox]

Nice clear explanation on the trading platforms. (Anyone wondering what the term 'pip' means - its variably known as 'Point In Percentage', 'Percentage in Point(s)', 'Price Interest Point(s)' representing 1/100th of a cent in dollars/pounds to 4 decimal places,  and to 2 decimal places for yen .)

[mlvnlx]

Appreciate the explanation!! But i wish sometime everybody start out with the obvious!! A point is a

[francinelopez]

Thank you I'm beginning to understand and I've been trying to figure it out for a while.

[shifitalc]

Thank you for all the videos! I have learnt a lot from them .

[JacquelineDemontague]

Thank you David, its very clear what a PIP is now.

[jamesbogsjr]

Cleared that up! Thank you thank you thank you.

[chichi]

literally the best channel i have found so far...if you guys have any more please drop them...

[Jacksulivan]

Clear explanation. Get it now. Thank you

[ladyemp]

Thank you for this video. It definitely helped clear up what Pips are. Quick question what's your strategy on finding an entry point to enter a trade?

[PookaTheGreat]

This was so helpful. Thank you so much

[albertmutemeri]

Thank you so much for the explanation.

[hoigiang]

great study !thank you !hope to learn more.

[TaefDewan]

I'm a beginner and these videos help a lot!

[jakewillis]

this was very very simple but Very very helpful! gave it a thumbs up :)

[sethacowell]

thanks for all the helpful videos, super informative and very clear and concise. you guys got it down. tyvm!!

[gagnonsmith]

This is a good update though I don't trade by myself anymore but no knowledge is a waste.

[jakubvalenta]

Pips are at currency pairs. For instance USD/GBP one CFD contract - one pip $10, - (or $9) while points are at commodities for instance Gold one CFD contract - one point $100, -.

[thak]

please create a video on options and explain this ce and other jargons

[TrunXo]

Hi, quik question, would you recommend always drawing the lines at the wicks or or is that just personal preference?

[cryptinu]

All videos are explaining this. Where can I find the pip value for currencies like NOK MXN DKK and ZAR???