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A pip is the smallest whole unit price move that an exchange rate can make, based on forex market convention. [1] It's important because forex trading involves tiny fluctuations in exchange rates, and Pips provide a standardized way to express these changes. By using Pip, traders can easily understand and discuss price movements, calculate ...
Tick size is the smallest increment (tick) by which the price of stocks, [4] futures contracts [5] or other exchange-traded instrument can move.. The purpose of having discrete price levels is to balance price priority with time priority.
In finance, a foreign exchange option (commonly shortened to just FX option or currency option) is a derivative financial instrument that gives the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. [1] See Foreign exchange derivative. [2]
A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is used as the reference is called the counter currency , quote currency, or currency [ 1 ] and the currency that is quoted in relation is called the base currency or transaction currency.
This is distinguished from a point swing, which is defined as the difference between the intraday high and the intraday low. Such records that turned negative are also recorded in a separate list. The opening price is used to calculate the point gain. The previous day close is used to calculate the net change.
The key currency generally refers to a world currency, which is widely used for pricing, settlement, reserve currency, freely convertible, and internationally accepted currency. Cross rate: After the basic exchange rate is worked out, the exchange rate of the local currency against other foreign currencies can be calculated through the basic ...
Several methods exist for calculating the pivot point (P) of a market.Most commonly, it is the arithmetic average of the high (H), low (L), and closing (C) prices of the market in the prior trading period: [3] [page needed]
The bid–ask spread (also bid–offer or bid/ask and buy/sell in the case of a market maker) is the difference between the prices quoted (either by a single market maker or in a limit order book) for an immediate sale and an immediate purchase for stocks, futures contracts, options, or currency pairs in some auction