Pip Question

gaining a pip means that the last digit beyond the decimal goes up by 1. However, who decides how many decimals the qoute goes to? For example… in pip school they say that usdjpy = 118.80 so if it goes to 118.81, thats a pip. But how is the precision of it decided. Some other currency pairs extend the decimal to four places… so 1 pip would be a gain of .0001.

Also, on some of my demo accounts, I will buy for say 131.155. But several times i have seen the decimal extended to say 131.1555 instead of just going to 131.160. why is that?

For all practical purposes, only the JPY crosses are quoted to 2 decimal places, meaning that a pip is .01 (a pippette then being a fraction of 1/100 of a point move). You may come across other pairs quoted to two place among the non-primary cross rates, but most people will never look at them.

For the non-JPY pairs a pip is, as you’ve noted, a .0001 move (1/10000th). Anything smaller than that gets in to pippettes.