Please can someone help me with the difference between pips and pipette ? Thank you.
Hi @_noblestar! You may check out this lesson in the School of Pipsology about Pips and Pippettes.
Hope it helps!
A pipette is equal to 1/10 (one tenth) of a pip and it represents a fraction of 1/100,000. So the fifth decimal digit in a platform denotes pipettes. For example if EUR/USD is at 1.25538 and a 2 pipettes advance takes place then the pair will be at 1.25540.
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Pip is the smallest fraction that a currency pair can move. It is also called 1 basis point. In US stock markets usually the price is moving by 1 cent of a dollar which is 1/100 whereas a pip in forex market is 1/10,000. A pipette equals 1/10 of a pip and it represents a fraction of 1/100,000.
A pip relates to movement in the fourth decimal place, while a pipette is used to measure movement in the fifth decimal place. A pipette is a ‘fractional pip’ as it equals a tenth of a pip.
pipette is 1/10th of pip. Most brokers measure their prices using pips however to show spreads, pipette should be used. For example EURUSD spread at Hotforex is 2-3 pipettes however it can be seen only in tick chart