In Forex, the price movements are called “pip”.
For example, in phrases such as “EURUSD went down 200 pips yesterday.” or “The gold hasn’t been able to move 100 pips for a week.”, what is mentioned are the price movements. In theory, pip is the last digit in the price of a symbol.
For example, if EUR USD goes up to 1.2065 from 1.2050 level, this means it went up 15 pips.
However, when you look at your trading platforms, you will see that in the EUR USD trading instrument, there are five digits after the period, not four. If we fix our mistake from the previous example, “If EUR USD goes up to 1.20650 level from 1.20500, it means it went up 15 pips.”.
It seems there is some confusion here. In fact, this occurred after the brokerage firms added one more digit to the prices of the trading instruments. The investors don’t read or say the last digit. However, they use them when they open their trading platforms. The reason for this is to allow transactions from more sensitive points. Nonetheless, even if that is the situation, no investors read the last digit while reading the number.
What about the name of the last digit? That digit is called “point”. So 10 points is 1 pip.
In brief, the measurement value used in the Forex market is a pip and it is the second digit from the last for all the symbols. Therefore, if the price of a product seen in a trading platform goes up to 1.25100 from 1.25000, we say “The price went up 10 pips. We can also say “The price went up 100 points.” but that is not a used technique.