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1. Shard Calculation

Query:

Response:

Calculated Shard: 188 (from laksa033)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa188.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.zfx.com/academy/22-what-is-spread-and-pips/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.zfx.com/academy/22-what-is-spread-and-pips/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/","crawl_time":1775973218,"first_indexed_time":1608663616,"http_code":200,"src_unparsed":"com,zfx!www,\/academy\/22-what-is-spread-and-pips\/ s443","src_root_hash":"16729057735785488188","history_drop_reason":null,"meta_title":"What is Spread and Pip? Different between Basis Point & Pip | ZFX","meta_descriptions":["In forex, the smallest unit to quantify the movement in currency quote is “a pip”, and the difference between the bid-ask prices is \"spread\""],"attrs_boilerpipe_text":"Forex is a global market, and traders constantly look for opportunities to make money. One way to do this is to find markets where the price is not yet settled and spread your investments across these markets to maximize profits.\nThis is called pip trading. Pip stands for price per unit, so when you spread your investment across multiple contracts, each with its own pip value, you are essentially trading individual currency units.\nWhat are Pips in Forex?\nForex trading is a highly popular investment opportunity that allows traders to profit by exchanging currencies. For traders to make informed decisions, they need to understand what pips are and how they can be used in the market.\nPips are units of measure used in Forex. They are often used to indicate the price movement of one currency unit against another and can be very useful for forex traders.\nThey serve as a way for traders to measure the difference between two currencies and provide valuable information about market movements.\nBecause pips change frequently, it is important for forex traders to have a solid understanding of them to make sound decisions.\nWhat is the difference between Pip and Spread in Forex?\nForex is a global market where different currencies are traded against each other. Pip and spread are two of the most common forex trading terms.\nPip\n(symbol: “p”) is the smallest currency trading unit used to quantify the movement in the currency. The \nspread\nis the difference between the bid and offer prices for a particular currency pair.\nGenerally speaking, in EUR\/USD, the fourth decimal place is the pip unit, while in USD\/JPY, due to the pricing of the Japanese Yen, the second decimal place is the pip unit.\nWhen the EUR\/USD appreciates from 1.1840 to 1.1849, we could say that the euro was up nine (9) pips against the dollar. When it comes to the spread cost, the spread of EUR\/USD from forex brokers is about three pips or less. This means that, for the standard contract, the spread cost for one contract (commonly defaulted as 100,000 units) is $30.\nNew investors should be aware of the difference between the bid price and the asking price of those currency pairs in FX trading. This is just a normal market condition. For example, there is a difference between bid-ask prices in stock trading and real-time streaming of stock quotes\n.\n \nWhat is a Basis point (BP)?\n \nA Basis point, also known as BP,\nis a financial term that refers to the smallest unit of a financial instrument, such as stocks, bonds, or currencies.\nThe basis point is also used in accounting to measure the price movement of an asset or liability over time. Financial institutions and investors use basis points to calculate and determine the value of investments.\nDifference between PIP (P) and Basis Point (BP)\nIn the forex market, Pip is a unit of calculation that refers to 1\/100 of a currency unit. BP might be mistaken as Pip by new investors in forex trading.\nIn practice, BP will not be used in forex trading because it describes changes in bonds and interest rates.\n \nBasis points are important because they help analysts and traders calculate investment risks. For example, if you own one (1) share of stock and the stock’s value increases by 100 basis points (1%), your share would be worth $1.01 rather than $1.00.\nA basis point equals 0.01%. For example, after the meeting of the FOMC, when it comes to rate hikes or rate cuts, 25-basis-points are often mentioned in the Fed’s decision.\nApart from the BP and PIP, Tick and Point are very common in expressing price movement, but newbies may easily misunderstand those differences.\n \nWhy is there an extra decimal place in the currency pairs quotation?\n \nAs mentioned above, a pip is a minimum change in price movement in the forex market. Still, most trading platforms now display an extra decimal place on the quote, which may cause misunderstanding of the traditional definition of 1 pip.\n \nIn fact, this is related to the development of the financial markets. Since the financial crisis in 2008, the technology and communication network have become increasingly advanced, and mind-boggling amounts of data can be processed at the same time efficiently.\nIn addition, financial companies generally attach great importance to information technology developments so that now brokers can be inter-connected to the forex market in many ways. With faster and more efficient transfers of data information, the market quote has become more refined and can offer 1 \/ 10 units of 1 pip, making the spread narrower correspondingly.\n \nThis benefits investors because a narrower spread means less trading cost. The competition among forex brokers is still fierce, so most of them quote this extra decimal place to clients. As a result, investors may interpret one pip differently over time.\n \nNext Article:\n \n23. What is pip value?\n——\nAbout\nZFX (Zeal Capital Market) \nThe Best Trading Platform Award 2019 from Financial Weekly, Regulated by FCA & FSA.\n100+ trading assets, including\nForex\n,\nStocks\n,\nIndices\n,\nGold, Crude Oil\n, etc.\n3 types of trading accounts\nto meet the needs of every customer\n0 commission, low spread, leverage ratio up to 1:2000\nPowerful trading platform that executes 50,000 orders\/s\nOpen an account with a minimum deposit of $50\n24-hour\nCustomer Service\n——\nRisk Warning:\n The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.","attrs_markdown":"CFDs are extremely high-risk products. 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[Academy](https:\/\/www.zfx.com\/academy\/)\n3. 22\\.What is Spread and Pip?\n\nA to Z Academy\n\nTrading Tips\n\nLearn CFD Trading [CFDs vs Futures: which one to trade?](https:\/\/www.zfx.com\/academy\/cfds-futures-difference\/)  [What is Leverage in Trading? \\| Calculate Leverage & Margin](https:\/\/www.zfx.com\/academy\/what-is-leverage-in-trading\/)  [Risk Management Tips for Forex & CFD Trading](https:\/\/www.zfx.com\/academy\/risk-management-forex-cfd-trading\/)  [What is CFD? Learn how CFD Trading works with Examples](https:\/\/www.zfx.com\/academy\/what-is-cfd-contract-for-difference\/)\n\nLearn Forex Trading [How to open a Foreign Currency Account? Compare Foreign Currency Accounts & Forex Accounts](https:\/\/www.zfx.com\/academy\/foreign-currency-account\/)  [How to Read an Economic Calendar for Forex?](https:\/\/www.zfx.com\/academy\/how-to-read-an-economic-calendar\/)  [Forex Algorithmic Trading: How to use EA on MT4](https:\/\/www.zfx.com\/academy\/forex-algo-trading-ea-mt4\/)  [Are Free Forex Signals Reliable?](https:\/\/www.zfx.com\/academy\/are-free-forex-signals-reliable\/)  [How to Set a Stop-Loss in Forex Trading?](https:\/\/www.zfx.com\/academy\/how-to-set-a-stop-loss-in-forex-trading\/)  [The Best Forex Currency Pairs to Trade](https:\/\/www.zfx.com\/academy\/forex-currency-pairs\/)  [A Guide on how to Profit in Forex Trading](https:\/\/www.zfx.com\/academy\/how-to-profit-in-forex-trading\/)  [What is Swap in Forex? \\| Fee Calculation for Overnight Positions](https:\/\/www.zfx.com\/academy\/what-is-swap-in-forex\/)  [Risk Management Tips for Forex & CFD Trading](https:\/\/www.zfx.com\/academy\/risk-management-forex-cfd-trading\/)  [The Best Forex Trading Hours \\| Forex Market Hours](https:\/\/www.zfx.com\/academy\/best-forex-trading-hours\/)\n\nMT4 Guides [Forex Algorithmic Trading: How to use EA on MT4](https:\/\/www.zfx.com\/academy\/forex-algo-trading-ea-mt4\/)  [MT4 Guide for Beginners – How to trade with MT4?](https:\/\/www.zfx.com\/academy\/mt4-guide\/)  [How to Set a Stop-Loss in Forex Trading?](https:\/\/www.zfx.com\/academy\/how-to-set-a-stop-loss-in-forex-trading\/)  [MT4 vs MT5 – What are the differences?](https:\/\/www.zfx.com\/academy\/mt4-mt5-differences\/)\n\nPlatforms & Tools [What is Slippage and How to Prevent it?](https:\/\/www.zfx.com\/academy\/slippage\/)  [5 Common Forex Scams & How to Avoid Them](https:\/\/www.zfx.com\/academy\/forex-frauds\/)  [How to Read an Economic Calendar for Forex?](https:\/\/www.zfx.com\/academy\/how-to-read-an-economic-calendar\/)  [STP and ECN Forex Accounts: What are the Differences?](https:\/\/www.zfx.com\/academy\/stp-ecn-forex-accounts\/)  [Are Free Forex Signals Reliable?](https:\/\/www.zfx.com\/academy\/are-free-forex-signals-reliable\/)  [DD and NDD Forex Brokers: What is the Difference?](https:\/\/www.zfx.com\/academy\/dd-ndd-forex-brokers-difference\/)\n\nTechnical Indicators [VIX (CBOE Volatility Index): How does it predict Market Volatility](https:\/\/www.zfx.com\/academy\/vix-cboe-volatility-index\/)  [Candlestick Chart Guide: 14 Common Candlestick Patterns Explained](https:\/\/www.zfx.com\/academy\/candlestick-patterns\/)  [ATR Indicator Guide: How to Use ATR in Forex Trading](https:\/\/www.zfx.com\/academy\/atr-indicator\/)  [Guide to Using Parabolic SAR in Forex Trading](https:\/\/www.zfx.com\/academy\/parabolic-sar-forex\/)  [Granville’s 8 Rules for Moving Average (MA) \\| Forex Indicators](https:\/\/www.zfx.com\/academy\/forex-technical-indicators-tutorial-moving-average-ma-granvilles-8-rules\/)  [Four Basic Technical Indicators for Forex Beginners](https:\/\/www.zfx.com\/academy\/basic-technical-indicators-for-forex-beginners\/)\n\nTrading Guides [How to Set a Take Profit in Forex?](https:\/\/www.zfx.com\/academy\/take-profit-guide\/)  [What is Bear Market? 4 Signs of Bear Market and Investment Strategies](https:\/\/www.zfx.com\/academy\/what-is-bear-market\/)  [Short Selling Guide: 5 Best Ways to Short a Stock](https:\/\/www.zfx.com\/academy\/short-selling-guide\/)  [6 Ways to Start Invest Small: Tips for Small Capital Investments](https:\/\/www.zfx.com\/academy\/small-capital-investments\/)  [What is Slippage and How to Prevent it?](https:\/\/www.zfx.com\/academy\/slippage\/)  [Copy Trading Guide: Can Copy Trading Make Money?](https:\/\/www.zfx.com\/academy\/what-is-copy-trading\/)  [Gold Investment Guide for Beginners: 5 Majors Ways to Invest in Gold](https:\/\/www.zfx.com\/academy\/gold-investment\/)  [Top 10 World Stock Indices (With Trading Hours)](https:\/\/www.zfx.com\/academy\/world-stock-indices\/)  [Forex Algorithmic Trading: How to use EA on MT4](https:\/\/www.zfx.com\/academy\/forex-algo-trading-ea-mt4\/)  [A Beginner’s Guide to Day Trading: 3 Ways to Spot Trading Signals](https:\/\/www.zfx.com\/academy\/day-trading-strategies\/)\n\nZ Academy – Beginner\n\n1\\. What are Financial Markets [1\\. What comprises a financial market?](https:\/\/www.zfx.com\/academy\/what-comprises-a-financial-market\/)  [2\\. What are commodities?](https:\/\/www.zfx.com\/academy\/what-are-commodities\/)  [3\\. What are spot trading and futures trading?](https:\/\/www.zfx.com\/academy\/3-what-are-spot-trading-and-futures-trading\/)  [4\\. What is OTC?](https:\/\/www.zfx.com\/academy\/4-what-is-otc\/)  [5\\. What is Contract for Difference (CFD)?](https:\/\/www.zfx.com\/academy\/what-is-cfd\/)  [6\\. Trading Models, What are they?](https:\/\/www.zfx.com\/academy\/6-what-are-ndd-dd-mm-stp-and-ecn\/)  [7\\. What are the most important economic data?](https:\/\/www.zfx.com\/academy\/economic-data\/)\n\n2\\. What is Foreign Exchange [8\\. Understand the Foreign Exchange (FX \/ Forex) Market](https:\/\/www.zfx.com\/academy\/foreign-exchange-fx-forex-market\/)  [9\\. What is Market Liquidity in Forex?](https:\/\/www.zfx.com\/academy\/9-what-is-market-liquidity\/)  [10\\. Advantages of trading foreign currencies](https:\/\/www.zfx.com\/academy\/10-what-are-advantages-of-trading-foreign-currencies\/)  [11\\.Online forex trading vs foreign currency bank accounts](https:\/\/www.zfx.com\/academy\/the-difference-between-online-forex-trading-and-holding-a-foreign-currency-bank-account\/)  [12\\.What is the Dollar Index in forex?](https:\/\/www.zfx.com\/academy\/12-what-is-dollar-index\/)  [13\\. What is reserve currency?](https:\/\/www.zfx.com\/academy\/what-is-reserve-currency\/)\n\n3\\. Understanding Forex Trading [14\\. What is Forex trading\/ FX Trading?](https:\/\/www.zfx.com\/academy\/14-what-is-forex-trading\/)  [15\\.How to understand the forex quote?](https:\/\/www.zfx.com\/academy\/15-how-to-understand-forex-quote\/)  [16\\.What are currency codes and symbols in Forex?](https:\/\/www.zfx.com\/academy\/what-are-currency-codes-in-forex\/)  [17\\.What are the Major Currencies?](https:\/\/www.zfx.com\/academy\/17-what-are-the-major-currencies\/)\n\n4\\. Practical Guide to Forex Trading [18\\. What is margin trading and why do we have margin calls?](https:\/\/www.zfx.com\/academy\/what-is-margin-trading-why-is-there-a-margin-call\/)  [19\\.How to calculate leverage?](https:\/\/www.zfx.com\/academy\/19-how-to-calculate-leverage\/)  [20\\. Why use leverage?](https:\/\/www.zfx.com\/academy\/20-why-use-leverage\/)  [22\\.What is Spread and Pip?](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)  [23\\.What is a pip value?](https:\/\/www.zfx.com\/academy\/23-what-is-pip-value\/)  [24\\. Why do the spreads sometimes become wider or narrower?](https:\/\/www.zfx.com\/academy\/24-why-do-the-spreads-sometimes-become-wider-or-narrower\/)  [25\\.What is slippage?](https:\/\/www.zfx.com\/academy\/25-what-is-slippage\/)  [26\\. What are long and short positions?](https:\/\/www.zfx.com\/academy\/26-what-is-long-and-short-position\/)  [27\\.How to interpret the contract size in FX trading?](https:\/\/www.zfx.com\/academy\/27-how-to-interpret-the-contract-size-in-fx-trading\/)  [28\\. What are stop loss and take profit?](https:\/\/www.zfx.com\/academy\/28-what-are-stop-loss-and-take-profit\/)\n\n5\\. Trading Platform Introduction [29\\.What is MT4 (Metatrader 4)?](https:\/\/www.zfx.com\/academy\/29-what-is-mt4-metatrader-4\/)  [30\\.Introduction to MT4 mobile version](https:\/\/www.zfx.com\/academy\/introduction-to-mt4-mobile-version\/)  [31\\.MT4 VS MT5](https:\/\/www.zfx.com\/academy\/31-mt4-vs-mt5\/)\n\nZ Academy – Intermediate\n\n1\\. Things investors must know before trading [5\\.Understanding the risks of investment correctly](https:\/\/www.zfx.com\/academy\/understanding-the-risks-of-investment-correctly\/)  [4\\.Position management and planning](https:\/\/www.zfx.com\/academy\/4-position-management-and-planning\/)  [3\\.Be familiar with trading rules and contract specifications](https:\/\/www.zfx.com\/academy\/be-familiar-with-trading-rules-and-contract-specifications\/)  [2\\.Determine your investment direction and mindset](https:\/\/www.zfx.com\/academy\/determine-your-investment-direction-and-mindset\/)  [1\\.Things investors should know before online trading](https:\/\/www.zfx.com\/academy\/1-things-investors-should-know-before-online-trading\/)\n\nZ Academy - Advanced\n\n1\\. Technical Indicator Tutorial [Candlestick Chart Guide: 14 Common Candlestick Patterns Explained](https:\/\/www.zfx.com\/academy\/candlestick-patterns\/)  [ATR Indicator Guide: How to Use ATR in Forex Trading](https:\/\/www.zfx.com\/academy\/atr-indicator\/)  [Guide to Using Parabolic SAR in Forex Trading](https:\/\/www.zfx.com\/academy\/parabolic-sar-forex\/)  [Granville’s 8 Rules for Moving Average (MA) \\| Forex Indicators](https:\/\/www.zfx.com\/academy\/forex-technical-indicators-tutorial-moving-average-ma-granvilles-8-rules\/)  [Four Basic Technical Indicators for Forex Beginners](https:\/\/www.zfx.com\/academy\/basic-technical-indicators-for-forex-beginners\/)\n\nStock\n\n[How to Buy Baidu Stock Now, Forecast and Dividend Guide](https:\/\/www.zfx.com\/academy\/how-to-buy-baidu-stock\/)  [How to Buy Exxon Mobil Stock Now, Forecast and Dividend](https:\/\/www.zfx.com\/academy\/how-to-buy-exxon-mobil-stock\/)  [How to Buy Johnson & Johnson Stock Now, Forecast and Dividend](https:\/\/www.zfx.com\/academy\/how-to-buy-johnson-johnson-stock\/)  [How to Buy Wells Fargo Stock Now, Forecast and Dividend](https:\/\/www.zfx.com\/academy\/how-to-buy-wells-fargo-stock\/)  [How to Buy Verizon Stock Now, Forecast and Dividend Guide](https:\/\/www.zfx.com\/academy\/how-to-buy-verizon-stock\/)  [How to Buy IBM Stock Now, Forecast and Dividend Guide](https:\/\/www.zfx.com\/academy\/how-to-buy-ibm-stock\/)  [How to Buy McDonald’s Stock Now, Forecast and Dividend Guide](https:\/\/www.zfx.com\/academy\/how-to-buy-mcdonalds-stock\/)  [How to Buy Chevron Stock Now, Forecast and Dividend Guide](https:\/\/www.zfx.com\/academy\/how-to-buy-chevron-stock\/)  [How To Buy JD.com Stocks Now – Price, Forecast and Dividend](https:\/\/www.zfx.com\/academy\/how-to-buy-jd-com-stock\/)  [How To Buy Tesla Stock Now, Price Forecast and Dividend Guide](https:\/\/www.zfx.com\/academy\/how-to-buy-tesla-stock\/)\n\nIndex\n\n[S\\&P ASX 200 Index: Share Price, Forecast and How to Invest](https:\/\/www.zfx.com\/academy\/sp-asx-200-index\/)  [US Dollar Index: Share Price, Chart and Forecast](https:\/\/www.zfx.com\/academy\/us-dollar-index\/)  [Hong Kong China H-Shares Index: Share Price, Chart, Forecast](https:\/\/www.zfx.com\/academy\/hong-kong-china-h-shares-index\/)  [CSI 300 Index: Share Price, Chart and Forecast](https:\/\/www.zfx.com\/academy\/csi-300-index\/)  [Euro Stoxx 50 Index: Share Price, Chart and Forecast](https:\/\/www.zfx.com\/academy\/euro-stoxx-50-index\/)  [DAX 40 (ex DAX 30): Share Price, Chart and Forecast](https:\/\/www.zfx.com\/academy\/dax-40-index\/)  [FTSE China A50 Index: Share Price, Chart and Forecast](https:\/\/www.zfx.com\/academy\/ftse-china-a50-index\/)  [Hang Seng Index: Share Price, Chart and Forecast](https:\/\/www.zfx.com\/academy\/hang-seng-index\/)  [IBEX 35 Index: Price Share, History and Forecast](https:\/\/www.zfx.com\/academy\/ibex-35-index\/)  [Nasdaq 100 Index: Share Price, Chart and Forecast](https:\/\/www.zfx.com\/academy\/nasdaq-100-index\/)\n\nStock Price\n\n[Coca-Cola Stock Price Chart, History and Forecast](https:\/\/www.zfx.com\/academy\/coca-cola-stock-price\/)  [China Mobile Stock Price Chart, History and Forecast](https:\/\/www.zfx.com\/academy\/china-mobile-stock-price\/)  [Cisco Stock Price – CSCO Price Today, History, Prediction](https:\/\/www.zfx.com\/academy\/cisco-stock-price\/)  [PepsiCo Stock Price – PEP Price Chart, History, Prediction](https:\/\/www.zfx.com\/academy\/pepsico-stock-price\/)  [Oracle Stock Price – ORCL Price Today, History, Prediction](https:\/\/www.zfx.com\/academy\/oracle-stock-price\/)  [Verizon Stock Price – VZ Price Today, History, Prediction](https:\/\/www.zfx.com\/academy\/verizon-stock-price\/)  [Visa Stock Price – V Price Chart, History, Prediction](https:\/\/www.zfx.com\/academy\/visa-stock-price\/)  [Disney Stock Price – DIS Price Chart, History and Forecast](https:\/\/www.zfx.com\/academy\/disney-stock-price\/)  [Boeing Stock Price – BA Price Chart, History, Prediction](https:\/\/www.zfx.com\/academy\/boeing-stock-price\/)  [Microsoft Stock Price – MSFT Price Chart, History, Prediction](https:\/\/www.zfx.com\/academy\/microsoft-stock-price\/)\n\nCommodity\n\n[Silver XAGUSD: Price Chart, Forecast and How to Invest](https:\/\/www.zfx.com\/academy\/silver\/)  [Gold XAUUSD: Price Chart, Forecast and How to Invest](https:\/\/www.zfx.com\/academy\/gold\/)  [Brent Oil Futures: Price Chart, Overview and How to Invest](https:\/\/www.zfx.com\/academy\/brent-oil-futures\/)  [WTI Oil Futures: Price Chart, Overview and How to Invest](https:\/\/www.zfx.com\/academy\/wti-oil-futures\/)  [Copper: Price Chart, Overview and How to Invest](https:\/\/www.zfx.com\/academy\/copper\/)  [Natural Gas: Price, Chart, Overview and How to Invest](https:\/\/www.zfx.com\/academy\/natural-gas\/)  [Platinum: Price Chart, Overview and How to Invest](https:\/\/www.zfx.com\/academy\/platinum\/)  [Palladium: Price, Charts, Overview and How to Invest](https:\/\/www.zfx.com\/academy\/palladium\/)  [Brent Oil: Price Chart, Overview and How to Invest](https:\/\/www.zfx.com\/academy\/brent-oil\/)  [WTI Oil: Price, Charts, Overview and How to Invest](https:\/\/www.zfx.com\/academy\/wti-oil\/)\n\nForex\n\n[NZDJPY: New Zealand Dollar-Yen Rate, Chart and Forecast](https:\/\/www.zfx.com\/academy\/nzd-jpy\/)  [NZDCAD: New Zealand-Canadian Dollar Rate, Chart, Forecast](https:\/\/www.zfx.com\/academy\/nzd-cad\/)  [AUDCHF: Australian Dollar-Swiss Franc Rate, Chart, Forecast](https:\/\/www.zfx.com\/academy\/aud-chf\/)  [EURNZD: Live Euro-New Zealand Dollar Rate, Chart and Forecast](https:\/\/www.zfx.com\/academy\/eur-nzd\/)  [USD CAD: Live Canadian Dollar-US Dollar Rate, Chart, Forecast](https:\/\/www.zfx.com\/academy\/usd-cad\/)  [AUDCAD: Exchange Rate, Conversion, Chart and Forecast](https:\/\/www.zfx.com\/academy\/aud-cad\/)  [GBP USD: Live Pound-Dollar Exchange Rate, Chart and Forecast](https:\/\/www.zfx.com\/academy\/gbp-usd\/)  [CHFJPY: Live Swiss Franc-Japanese Yen Rate, Chart, Forecast](https:\/\/www.zfx.com\/academy\/chf-jpy\/)  [GBPCHF: Pound to Swiss Franc Exchange Rate, Chart, Forecast](https:\/\/www.zfx.com\/academy\/gbp-chf\/)  [GBP CAD: British Pound-Canadian Dollar Rate, Chart, Forecast](https:\/\/www.zfx.com\/academy\/gbp-cad\/)\n\nA to Z Academy \/ 4. Practical Guide to Forex Trading\n\n# 22\\.What is Spread and Pip?\nNovember 12, 2020 01:37\n\nForex is a global market, and traders constantly look for opportunities to make money. One way to do this is to find markets where the price is not yet settled and spread your investments across these markets to maximize profits.  \n This is called pip trading. Pip stands for price per unit, so when you spread your investment across multiple contracts, each with its own pip value, you are essentially trading individual currency units.\n\n## What are Pips in Forex?\nForex trading is a highly popular investment opportunity that allows traders to profit by exchanging currencies. For traders to make informed decisions, they need to understand what pips are and how they can be used in the market.\n\nPips are units of measure used in Forex. They are often used to indicate the price movement of one currency unit against another and can be very useful for forex traders.  \n They serve as a way for traders to measure the difference between two currencies and provide valuable information about market movements.  \n Because pips change frequently, it is important for forex traders to have a solid understanding of them to make sound decisions.\n\n### ****What is the difference between Pip and Spread in Forex?****\nForex is a global market where different currencies are traded against each other. Pip and spread are two of the most common forex trading terms.\n\n**Pip** (symbol: “p”) is the smallest currency trading unit used to quantify the movement in the currency. The **spread** is the difference between the bid and offer prices for a particular currency pair.\n\nGenerally speaking, in EUR\/USD, the fourth decimal place is the pip unit, while in USD\/JPY, due to the pricing of the Japanese Yen, the second decimal place is the pip unit.\n\nWhen the EUR\/USD appreciates from 1.1840 to 1.1849, we could say that the euro was up nine (9) pips against the dollar. When it comes to the spread cost, the spread of EUR\/USD from forex brokers is about three pips or less. This means that, for the standard contract, the spread cost for one contract (commonly defaulted as 100,000 units) is \\$30.\n\n###\nNew investors should be aware of the difference between the bid price and the asking price of those currency pairs in FX trading. This is just a normal market condition. For example, there is a difference between bid-ask prices in stock trading and real-time streaming of stock quotes.\n\n![What is Spread and Pip? Different between Basis Point \\&amp; Pip \\| ZFX](https:\/\/www.cdn-zfx.com\/wp-content\/uploads\/2020\/12\/bH66V76C-%E5%9B%BE%E7%89%877-300x237.png)\n\n### **What is a Basis point (BP)?**\nA Basis point, also known as BP, is a financial term that refers to the smallest unit of a financial instrument, such as stocks, bonds, or currencies.\n\nThe basis point is also used in accounting to measure the price movement of an asset or liability over time. Financial institutions and investors use basis points to calculate and determine the value of investments.\n\n### Difference between PIP (P) and Basis Point (BP)\nIn the forex market, Pip is a unit of calculation that refers to 1\/100 of a currency unit. BP might be mistaken as Pip by new investors in forex trading.  \n In practice, BP will not be used in forex trading because it describes changes in bonds and interest rates.\n\nBasis points are important because they help analysts and traders calculate investment risks. For example, if you own one (1) share of stock and the stock’s value increases by 100 basis points (1%), your share would be worth \\$1.01 rather than \\$1.00.\n\nA basis point equals 0.01%. For example, after the meeting of the FOMC, when it comes to rate hikes or rate cuts, 25-basis-points are often mentioned in the Fed’s decision.\n\nApart from the BP and PIP, Tick and Point are very common in expressing price movement, but newbies may easily misunderstand those differences.\n\n### **Why is there an extra decimal place in the currency pairs quotation?**\nAs mentioned above, a pip is a minimum change in price movement in the forex market. Still, most trading platforms now display an extra decimal place on the quote, which may cause misunderstanding of the traditional definition of 1 pip.\n\nIn fact, this is related to the development of the financial markets. Since the financial crisis in 2008, the technology and communication network have become increasingly advanced, and mind-boggling amounts of data can be processed at the same time efficiently.\n\nIn addition, financial companies generally attach great importance to information technology developments so that now brokers can be inter-connected to the forex market in many ways. With faster and more efficient transfers of data information, the market quote has become more refined and can offer 1 \/ 10 units of 1 pip, making the spread narrower correspondingly.\n\nThis benefits investors because a narrower spread means less trading cost. The competition among forex brokers is still fierce, so most of them quote this extra decimal place to clients. As a result, investors may interpret one pip differently over time.\n\n###\n**Next Article:** **[23\\. What is pip value?](https:\/\/www.zfx.com\/academy\/23-what-is-pip-value\/)**\n\n——\n\n##### **About [ZFX (Zeal Capital Market)](https:\/\/www.zfx.com\/)**\n- **The Best Trading Platform Award 2019 from Financial Weekly, Regulated by FCA & FSA.**\n- **100+ trading assets, including [Forex](https:\/\/www.zfx.com\/products\/forex\/), [Stocks](https:\/\/www.zfx.com\/products\/shares\/), [Indices](https:\/\/www.zfx.com\/products\/indices), [Gold, Crude Oil](https:\/\/www.zfx.com\/products\/commodities\/), etc.**\n- **[3 types of trading accounts](https:\/\/www.zfx.com\/accounts\/) to meet the needs of every customer**\n- **0 commission, low spread, leverage ratio up to 1:2000**\n- **Powerful trading platform that executes 50,000 orders\/s**\n- **Open an account with a minimum deposit of \\$50**\n- **24-hour [Customer Service](https:\/\/www.zfx.com\/about-zfx\/contact-us\/)**\n\n[![What is Spread and Pip? Different between Basis Point \\&amp; Pip \\| ZFX](https:\/\/www.cdn-zfx.com\/wp-content\/uploads\/2020\/06\/tdqybsvb-photo_2020-09-17_18-07-24.jpg)](https:\/\/my.zfx.com\/login\/index)\n\n——\n\n**Risk Warning:** The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.\n\nPREVIOUS\n\n[20\\. Why use leverage?](https:\/\/www.zfx.com\/academy\/20-why-use-leverage\/)\n\nNEXT\n\n[23\\.What is a pip value?](https:\/\/www.zfx.com\/academy\/23-what-is-pip-value\/)\n\nKnowledge is POWER\n\nNever miss an opportunity to learn and grow as a trader. Join the ZFX Academy mailing list to be the first to know about our next webinar, article or guide.\n\n[Contact Us](https:\/\/www.zfx.com\/about-zfx\/contact-us\/)\n\n- [TRADING](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n  - [Accounts](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n    - [Accounts](https:\/\/www.zfx.com\/accounts\/)\n  - [Products](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n    - [Forex](https:\/\/www.zfx.com\/products\/forex)\n    - [Indices](https:\/\/www.zfx.com\/products\/indices\/)\n    - [Commodities](https:\/\/www.zfx.com\/products\/commodities\/)\n    - [Shares](https:\/\/www.zfx.com\/products\/shares\/)\n    - [CFD Cryptocurrencies](https:\/\/www.zfx.com\/products\/cryptocurrencies\/)\n  - [Product Overview](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n    - [Applicable Leverage](https:\/\/www.zfx.com\/product-overview\/applicable-leverage\/)\n    - [Contract Specifications](https:\/\/www.zfx.com\/product-overview\/contract-specifications\/)\n- [PLATFORMS](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n  - [Metatrader 4](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n    - [Platform Summary](https:\/\/www.zfx.com\/platforms\/)\n    - [ZFX MT4 for Windows](https:\/\/www.zfx.com\/platforms\/pc-mt4\/)\n    - [ZFX MT4 for Mac](https:\/\/www.zfx.com\/platforms\/mac-mt4\/)\n    - [ZFX MT4 for Mobile](https:\/\/www.zfx.com\/platforms\/mobile-mt4\/)\n    - [ZFX Webtrader](https:\/\/webtrader.zfx.com\/)\n  - [ZFX Platforms](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n    - [ZFX Mobile App](https:\/\/www.zfx.com\/platforms\/mobile-app\/)\n    - [MAM Service](https:\/\/www.zfx.com\/platforms\/mam\/)\n- [ANALYSIS](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n  - [News](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n    - [Market News](https:\/\/www.zfx.com\/market-news\/)\n    - [Market Outlook](https:\/\/www.zfx.com\/market-outlook\/)\n  - [Tools](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)\n    - [Economic calendar](https:\/\/www.zfx.com\/economic-calendar\/)\n    - 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Please ensure that you fully understand the risks involved, and seek independent advice if necessary.\n***\nZeal Capital Market (Seychelles) Limited is a financial institution specializing in providing multi-asset trading services including currencies (foreign exchange, forex or FX), commodities, indices and shares to institutional and retail investors, and is mainly compensated for its broking services through bid\/ask price differences (spread) and\/or commissions.\n\nZFX and Traze are the approved trade names of Zeal Capital Market (Seychelles) Limited.\n\nZeal Capital Market (Seychelles) Limited does not provide services for residents of certain countries such as the United States of America, Brazil, Canada, Iran, North Korea (Democratic People's Republic of Korea), and EU countries.\n\nZeal Capital Market (Seychelles) Limited is regulated as a Securities Dealer by the Financial Services Authority of Seychelles, license number: SD027, company registration number: 8422618-1. Its principal office is at: Room 2, Green Corner Building, Providence Industrial Estate, Mahe, Seychelles. Its registered address is: Room B11, First Floor, Providence Complex, Providence, Mahe, Seychelles.\n\nZeal Capital Market (UK) Limited is a company registered in England and Wales with register number 10219924 and whose registered office is at No. 1 Royal Exchange, London, EC3V 3DG. It is authorised and regulated by the Financial Conduct Authority (FRN 768451), and is a wholly-owned subsidiary of Zeal Holdings Limited. Zeal Capital Market (UK) Limited does not offer services to retail clients.\n\nThis website is provided for general information purposes only and does not constitute an offer, invitation, or solicitation in any jurisdiction where such activities are restricted or prohibited, such as Japan. Access to and use of the website is subject to compliance with applicable local laws.\n\nThis website: www.zfx.com is operated by Zeal Capital Market (Seychelles) Limited.\n\n© 2026 Zeal Capital Market (Seychelles) Limited. All rights reserved.\n\nSelect your preferred way to connect with us\n\n[FAQ](https:\/\/www.zfx.com\/faq\/about-product\/)\n\n[Email](https:\/\/www.zfx.com\/about-zfx\/contact-us\/#form)\n\n[Live Chat Channel \\#1](https:\/\/www.zfx.com\/academy\/22-what-is-spread-and-pips\/)","attrs_readable_markdown":"Forex is a global market, and traders constantly look for opportunities to make money. One way to do this is to find markets where the price is not yet settled and spread your investments across these markets to maximize profits.  \n This is called pip trading. Pip stands for price per unit, so when you spread your investment across multiple contracts, each with its own pip value, you are essentially trading individual currency units.\n\n## What are Pips in Forex?\nForex trading is a highly popular investment opportunity that allows traders to profit by exchanging currencies. For traders to make informed decisions, they need to understand what pips are and how they can be used in the market.\n\nPips are units of measure used in Forex. They are often used to indicate the price movement of one currency unit against another and can be very useful for forex traders.  \n They serve as a way for traders to measure the difference between two currencies and provide valuable information about market movements.  \n Because pips change frequently, it is important for forex traders to have a solid understanding of them to make sound decisions.\n\n### ****What is the difference between Pip and Spread in Forex?****\nForex is a global market where different currencies are traded against each other. Pip and spread are two of the most common forex trading terms.\n\n**Pip** (symbol: “p”) is the smallest currency trading unit used to quantify the movement in the currency. The **spread** is the difference between the bid and offer prices for a particular currency pair.\n\nGenerally speaking, in EUR\/USD, the fourth decimal place is the pip unit, while in USD\/JPY, due to the pricing of the Japanese Yen, the second decimal place is the pip unit.\n\nWhen the EUR\/USD appreciates from 1.1840 to 1.1849, we could say that the euro was up nine (9) pips against the dollar. When it comes to the spread cost, the spread of EUR\/USD from forex brokers is about three pips or less. This means that, for the standard contract, the spread cost for one contract (commonly defaulted as 100,000 units) is \\$30.\n\nNew investors should be aware of the difference between the bid price and the asking price of those currency pairs in FX trading. This is just a normal market condition. For example, there is a difference between bid-ask prices in stock trading and real-time streaming of stock quotes.\n\n![What is Spread and Pip? Different between Basis Point \\&amp; Pip \\| ZFX](https:\/\/www.cdn-zfx.com\/wp-content\/uploads\/2020\/12\/bH66V76C-%E5%9B%BE%E7%89%877-300x237.png)\n\n### **What is a Basis point (BP)?**\nA Basis point, also known as BP, is a financial term that refers to the smallest unit of a financial instrument, such as stocks, bonds, or currencies.\n\nThe basis point is also used in accounting to measure the price movement of an asset or liability over time. Financial institutions and investors use basis points to calculate and determine the value of investments.\n\n### Difference between PIP (P) and Basis Point (BP)\nIn the forex market, Pip is a unit of calculation that refers to 1\/100 of a currency unit. BP might be mistaken as Pip by new investors in forex trading.  \n In practice, BP will not be used in forex trading because it describes changes in bonds and interest rates.\n\nBasis points are important because they help analysts and traders calculate investment risks. For example, if you own one (1) share of stock and the stock’s value increases by 100 basis points (1%), your share would be worth \\$1.01 rather than \\$1.00.\n\nA basis point equals 0.01%. For example, after the meeting of the FOMC, when it comes to rate hikes or rate cuts, 25-basis-points are often mentioned in the Fed’s decision.\n\nApart from the BP and PIP, Tick and Point are very common in expressing price movement, but newbies may easily misunderstand those differences.\n\n### **Why is there an extra decimal place in the currency pairs quotation?**\nAs mentioned above, a pip is a minimum change in price movement in the forex market. Still, most trading platforms now display an extra decimal place on the quote, which may cause misunderstanding of the traditional definition of 1 pip.\n\nIn fact, this is related to the development of the financial markets. Since the financial crisis in 2008, the technology and communication network have become increasingly advanced, and mind-boggling amounts of data can be processed at the same time efficiently.\n\nIn addition, financial companies generally attach great importance to information technology developments so that now brokers can be inter-connected to the forex market in many ways. With faster and more efficient transfers of data information, the market quote has become more refined and can offer 1 \/ 10 units of 1 pip, making the spread narrower correspondingly.\n\nThis benefits investors because a narrower spread means less trading cost. The competition among forex brokers is still fierce, so most of them quote this extra decimal place to clients. As a result, investors may interpret one pip differently over time.\n\n**Next Article:** **[23\\. What is pip value?](https:\/\/www.zfx.com\/academy\/23-what-is-pip-value\/)**\n\n——\n\n##### **About [ZFX (Zeal Capital Market)](https:\/\/www.zfx.com\/)**\n- **The Best Trading Platform Award 2019 from Financial Weekly, Regulated by FCA & FSA.**\n- **100+ trading assets, including [Forex](https:\/\/www.zfx.com\/products\/forex\/), [Stocks](https:\/\/www.zfx.com\/products\/shares\/), [Indices](https:\/\/www.zfx.com\/products\/indices), [Gold, Crude Oil](https:\/\/www.zfx.com\/products\/commodities\/), etc.**\n- **[3 types of trading accounts](https:\/\/www.zfx.com\/accounts\/) to meet the needs of every customer**\n- **0 commission, low spread, leverage ratio up to 1:2000**\n- **Powerful trading platform that executes 50,000 orders\/s**\n- **Open an account with a minimum deposit of \\$50**\n- **24-hour [Customer Service](https:\/\/www.zfx.com\/about-zfx\/contact-us\/)**\n\n[![What is Spread and Pip? Different between Basis Point \\&amp; Pip \\| ZFX](https:\/\/www.cdn-zfx.com\/wp-content\/uploads\/2020\/06\/tdqybsvb-photo_2020-09-17_18-07-24.jpg)](https:\/\/my.zfx.com\/login\/index)\n\n——\n\n**Risk Warning:** The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.","meta_canonical":null}

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Boilerpipe Text	Forex is a global market, and traders constantly look for opportunities to make money. One way to do this is to find markets where the price is not yet settled and spread your investments across these markets to maximize profits. This is called pip trading. Pip stands for price per unit, so when you spread your investment across multiple contracts, each with its own pip value, you are essentially trading individual currency units. What are Pips in Forex? Forex trading is a highly popular investment opportunity that allows traders to profit by exchanging currencies. For traders to make informed decisions, they need to understand what pips are and how they can be used in the market. Pips are units of measure used in Forex. They are often used to indicate the price movement of one currency unit against another and can be very useful for forex traders. They serve as a way for traders to measure the difference between two currencies and provide valuable information about market movements. Because pips change frequently, it is important for forex traders to have a solid understanding of them to make sound decisions. What is the difference between Pip and Spread in Forex? Forex is a global market where different currencies are traded against each other. Pip and spread are two of the most common forex trading terms. Pip (symbol: “p”) is the smallest currency trading unit used to quantify the movement in the currency. The spread is the difference between the bid and offer prices for a particular currency pair. Generally speaking, in EUR/USD, the fourth decimal place is the pip unit, while in USD/JPY, due to the pricing of the Japanese Yen, the second decimal place is the pip unit. When the EUR/USD appreciates from 1.1840 to 1.1849, we could say that the euro was up nine (9) pips against the dollar. When it comes to the spread cost, the spread of EUR/USD from forex brokers is about three pips or less. This means that, for the standard contract, the spread cost for one contract (commonly defaulted as 100,000 units) is $30. New investors should be aware of the difference between the bid price and the asking price of those currency pairs in FX trading. This is just a normal market condition. For example, there is a difference between bid-ask prices in stock trading and real-time streaming of stock quotes . What is a Basis point (BP)? A Basis point, also known as BP, is a financial term that refers to the smallest unit of a financial instrument, such as stocks, bonds, or currencies. The basis point is also used in accounting to measure the price movement of an asset or liability over time. Financial institutions and investors use basis points to calculate and determine the value of investments. Difference between PIP (P) and Basis Point (BP) In the forex market, Pip is a unit of calculation that refers to 1/100 of a currency unit. BP might be mistaken as Pip by new investors in forex trading. In practice, BP will not be used in forex trading because it describes changes in bonds and interest rates. Basis points are important because they help analysts and traders calculate investment risks. For example, if you own one (1) share of stock and the stock’s value increases by 100 basis points (1%), your share would be worth $1.01 rather than $1.00. A basis point equals 0.01%. For example, after the meeting of the FOMC, when it comes to rate hikes or rate cuts, 25-basis-points are often mentioned in the Fed’s decision. Apart from the BP and PIP, Tick and Point are very common in expressing price movement, but newbies may easily misunderstand those differences. Why is there an extra decimal place in the currency pairs quotation? As mentioned above, a pip is a minimum change in price movement in the forex market. Still, most trading platforms now display an extra decimal place on the quote, which may cause misunderstanding of the traditional definition of 1 pip. In fact, this is related to the development of the financial markets. Since the financial crisis in 2008, the technology and communication network have become increasingly advanced, and mind-boggling amounts of data can be processed at the same time efficiently. In addition, financial companies generally attach great importance to information technology developments so that now brokers can be inter-connected to the forex market in many ways. With faster and more efficient transfers of data information, the market quote has become more refined and can offer 1 / 10 units of 1 pip, making the spread narrower correspondingly. This benefits investors because a narrower spread means less trading cost. The competition among forex brokers is still fierce, so most of them quote this extra decimal place to clients. As a result, investors may interpret one pip differently over time. Next Article: 23. What is pip value? —— About ZFX (Zeal Capital Market) The Best Trading Platform Award 2019 from Financial Weekly, Regulated by FCA & FSA. 100+ trading assets, including Forex , Stocks , Indices , Gold, Crude Oil , etc. 3 types of trading accounts to meet the needs of every customer 0 commission, low spread, leverage ratio up to 1:2000 Powerful trading platform that executes 50,000 orders/s Open an account with a minimum deposit of $50 24-hour Customer Service —— Risk Warning: The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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A to Z Academy Trading Tips Learn CFD Trading [CFDs vs Futures: which one to trade?](https://www.zfx.com/academy/cfds-futures-difference/) [What is Leverage in Trading? \\| Calculate Leverage & Margin](https://www.zfx.com/academy/what-is-leverage-in-trading/) [Risk Management Tips for Forex & CFD Trading](https://www.zfx.com/academy/risk-management-forex-cfd-trading/) [What is CFD? Learn how CFD Trading works with Examples](https://www.zfx.com/academy/what-is-cfd-contract-for-difference/) Learn Forex Trading [How to open a Foreign Currency Account? Compare Foreign Currency Accounts & Forex Accounts](https://www.zfx.com/academy/foreign-currency-account/) [How to Read an Economic Calendar for Forex?](https://www.zfx.com/academy/how-to-read-an-economic-calendar/) [Forex Algorithmic Trading: How to use EA on MT4](https://www.zfx.com/academy/forex-algo-trading-ea-mt4/) [Are Free Forex Signals Reliable?](https://www.zfx.com/academy/are-free-forex-signals-reliable/) [How to Set a Stop-Loss in Forex Trading?](https://www.zfx.com/academy/how-to-set-a-stop-loss-in-forex-trading/) [The Best Forex Currency Pairs to Trade](https://www.zfx.com/academy/forex-currency-pairs/) [A Guide on how to Profit in Forex Trading](https://www.zfx.com/academy/how-to-profit-in-forex-trading/) [What is Swap in Forex? \\| Fee Calculation for Overnight Positions](https://www.zfx.com/academy/what-is-swap-in-forex/) [Risk Management Tips for Forex & CFD Trading](https://www.zfx.com/academy/risk-management-forex-cfd-trading/) [The Best Forex Trading Hours \\| Forex Market Hours](https://www.zfx.com/academy/best-forex-trading-hours/) MT4 Guides [Forex Algorithmic Trading: How to use EA on MT4](https://www.zfx.com/academy/forex-algo-trading-ea-mt4/) [MT4 Guide for Beginners – How to trade with MT4?](https://www.zfx.com/academy/mt4-guide/) [How to Set a Stop-Loss in Forex Trading?](https://www.zfx.com/academy/how-to-set-a-stop-loss-in-forex-trading/) [MT4 vs MT5 – What are the differences?](https://www.zfx.com/academy/mt4-mt5-differences/) Platforms & Tools [What is Slippage and How to Prevent it?](https://www.zfx.com/academy/slippage/) [5 Common Forex Scams & How to Avoid Them](https://www.zfx.com/academy/forex-frauds/) [How to Read an Economic Calendar for Forex?](https://www.zfx.com/academy/how-to-read-an-economic-calendar/) [STP and ECN Forex Accounts: What are the Differences?](https://www.zfx.com/academy/stp-ecn-forex-accounts/) [Are Free Forex Signals Reliable?](https://www.zfx.com/academy/are-free-forex-signals-reliable/) [DD and NDD Forex Brokers: What is the Difference?](https://www.zfx.com/academy/dd-ndd-forex-brokers-difference/) Technical Indicators [VIX (CBOE Volatility Index): How does it predict Market Volatility](https://www.zfx.com/academy/vix-cboe-volatility-index/) [Candlestick Chart Guide: 14 Common Candlestick Patterns Explained](https://www.zfx.com/academy/candlestick-patterns/) [ATR Indicator Guide: How to Use ATR in Forex Trading](https://www.zfx.com/academy/atr-indicator/) [Guide to Using Parabolic SAR in Forex Trading](https://www.zfx.com/academy/parabolic-sar-forex/) [Granville’s 8 Rules for Moving Average (MA) \\| Forex Indicators](https://www.zfx.com/academy/forex-technical-indicators-tutorial-moving-average-ma-granvilles-8-rules/) [Four Basic Technical Indicators for Forex Beginners](https://www.zfx.com/academy/basic-technical-indicators-for-forex-beginners/) Trading Guides [How to Set a Take Profit in Forex?](https://www.zfx.com/academy/take-profit-guide/) [What is Bear Market? 4 Signs of Bear Market and Investment Strategies](https://www.zfx.com/academy/what-is-bear-market/) [Short Selling Guide: 5 Best Ways to Short a Stock](https://www.zfx.com/academy/short-selling-guide/) [6 Ways to Start Invest Small: Tips for Small Capital Investments](https://www.zfx.com/academy/small-capital-investments/) [What is Slippage and How to Prevent it?](https://www.zfx.com/academy/slippage/) [Copy Trading Guide: Can Copy Trading Make Money?](https://www.zfx.com/academy/what-is-copy-trading/) [Gold Investment Guide for Beginners: 5 Majors Ways to Invest in Gold](https://www.zfx.com/academy/gold-investment/) [Top 10 World Stock Indices (With Trading Hours)](https://www.zfx.com/academy/world-stock-indices/) [Forex Algorithmic Trading: How to use EA on MT4](https://www.zfx.com/academy/forex-algo-trading-ea-mt4/) [A Beginner’s Guide to Day Trading: 3 Ways to Spot Trading Signals](https://www.zfx.com/academy/day-trading-strategies/) Z Academy – Beginner 1\. What are Financial Markets [1\. What comprises a financial market?](https://www.zfx.com/academy/what-comprises-a-financial-market/) [2\. What are commodities?](https://www.zfx.com/academy/what-are-commodities/) [3\. What are spot trading and futures trading?](https://www.zfx.com/academy/3-what-are-spot-trading-and-futures-trading/) [4\. What is OTC?](https://www.zfx.com/academy/4-what-is-otc/) [5\. What is Contract for Difference (CFD)?](https://www.zfx.com/academy/what-is-cfd/) [6\. Trading Models, What are they?](https://www.zfx.com/academy/6-what-are-ndd-dd-mm-stp-and-ecn/) [7\. What are the most important economic data?](https://www.zfx.com/academy/economic-data/) 2\. What is Foreign Exchange [8\. Understand the Foreign Exchange (FX / Forex) Market](https://www.zfx.com/academy/foreign-exchange-fx-forex-market/) [9\. What is Market Liquidity in Forex?](https://www.zfx.com/academy/9-what-is-market-liquidity/) [10\. Advantages of trading foreign currencies](https://www.zfx.com/academy/10-what-are-advantages-of-trading-foreign-currencies/) [11\.Online forex trading vs foreign currency bank accounts](https://www.zfx.com/academy/the-difference-between-online-forex-trading-and-holding-a-foreign-currency-bank-account/) [12\.What is the Dollar Index in forex?](https://www.zfx.com/academy/12-what-is-dollar-index/) [13\. What is reserve currency?](https://www.zfx.com/academy/what-is-reserve-currency/) 3\. Understanding Forex Trading [14\. What is Forex trading/ FX Trading?](https://www.zfx.com/academy/14-what-is-forex-trading/) [15\.How to understand the forex quote?](https://www.zfx.com/academy/15-how-to-understand-forex-quote/) [16\.What are currency codes and symbols in Forex?](https://www.zfx.com/academy/what-are-currency-codes-in-forex/) [17\.What are the Major Currencies?](https://www.zfx.com/academy/17-what-are-the-major-currencies/) 4\. Practical Guide to Forex Trading [18\. What is margin trading and why do we have margin calls?](https://www.zfx.com/academy/what-is-margin-trading-why-is-there-a-margin-call/) [19\.How to calculate leverage?](https://www.zfx.com/academy/19-how-to-calculate-leverage/) [20\. Why use leverage?](https://www.zfx.com/academy/20-why-use-leverage/) [22\.What is Spread and Pip?](https://www.zfx.com/academy/22-what-is-spread-and-pips/) [23\.What is a pip value?](https://www.zfx.com/academy/23-what-is-pip-value/) [24\. Why do the spreads sometimes become wider or narrower?](https://www.zfx.com/academy/24-why-do-the-spreads-sometimes-become-wider-or-narrower/) [25\.What is slippage?](https://www.zfx.com/academy/25-what-is-slippage/) [26\. What are long and short positions?](https://www.zfx.com/academy/26-what-is-long-and-short-position/) [27\.How to interpret the contract size in FX trading?](https://www.zfx.com/academy/27-how-to-interpret-the-contract-size-in-fx-trading/) [28\. What are stop loss and take profit?](https://www.zfx.com/academy/28-what-are-stop-loss-and-take-profit/) 5\. Trading Platform Introduction [29\.What is MT4 (Metatrader 4)?](https://www.zfx.com/academy/29-what-is-mt4-metatrader-4/) [30\.Introduction to MT4 mobile version](https://www.zfx.com/academy/introduction-to-mt4-mobile-version/) [31\.MT4 VS MT5](https://www.zfx.com/academy/31-mt4-vs-mt5/) Z Academy – Intermediate 1\. Things investors must know before trading [5\.Understanding the risks of investment correctly](https://www.zfx.com/academy/understanding-the-risks-of-investment-correctly/) [4\.Position management and planning](https://www.zfx.com/academy/4-position-management-and-planning/) [3\.Be familiar with trading rules and contract specifications](https://www.zfx.com/academy/be-familiar-with-trading-rules-and-contract-specifications/) [2\.Determine your investment direction and mindset](https://www.zfx.com/academy/determine-your-investment-direction-and-mindset/) [1\.Things investors should know before online trading](https://www.zfx.com/academy/1-things-investors-should-know-before-online-trading/) Z Academy - Advanced 1\. Technical Indicator Tutorial [Candlestick Chart Guide: 14 Common Candlestick Patterns Explained](https://www.zfx.com/academy/candlestick-patterns/) [ATR Indicator Guide: How to Use ATR in Forex Trading](https://www.zfx.com/academy/atr-indicator/) [Guide to Using Parabolic SAR in Forex Trading](https://www.zfx.com/academy/parabolic-sar-forex/) [Granville’s 8 Rules for Moving Average (MA) \\| Forex Indicators](https://www.zfx.com/academy/forex-technical-indicators-tutorial-moving-average-ma-granvilles-8-rules/) [Four Basic Technical Indicators for Forex Beginners](https://www.zfx.com/academy/basic-technical-indicators-for-forex-beginners/) Stock [How to Buy Baidu Stock Now, Forecast and Dividend Guide](https://www.zfx.com/academy/how-to-buy-baidu-stock/) [How to Buy Exxon Mobil Stock Now, Forecast and Dividend](https://www.zfx.com/academy/how-to-buy-exxon-mobil-stock/) [How to Buy Johnson & Johnson Stock Now, Forecast and Dividend](https://www.zfx.com/academy/how-to-buy-johnson-johnson-stock/) [How to Buy Wells Fargo Stock Now, Forecast and Dividend](https://www.zfx.com/academy/how-to-buy-wells-fargo-stock/) [How to Buy Verizon Stock Now, Forecast and Dividend Guide](https://www.zfx.com/academy/how-to-buy-verizon-stock/) [How to Buy IBM Stock Now, Forecast and Dividend Guide](https://www.zfx.com/academy/how-to-buy-ibm-stock/) [How to Buy McDonald’s Stock Now, Forecast and Dividend Guide](https://www.zfx.com/academy/how-to-buy-mcdonalds-stock/) [How to Buy Chevron Stock Now, Forecast and Dividend Guide](https://www.zfx.com/academy/how-to-buy-chevron-stock/) [How To Buy JD.com Stocks Now – Price, Forecast and Dividend](https://www.zfx.com/academy/how-to-buy-jd-com-stock/) [How To Buy Tesla Stock Now, Price Forecast and Dividend Guide](https://www.zfx.com/academy/how-to-buy-tesla-stock/) Index [S\&P ASX 200 Index: Share Price, Forecast and How to Invest](https://www.zfx.com/academy/sp-asx-200-index/) [US Dollar Index: Share Price, Chart and Forecast](https://www.zfx.com/academy/us-dollar-index/) [Hong Kong China H-Shares Index: Share Price, Chart, Forecast](https://www.zfx.com/academy/hong-kong-china-h-shares-index/) [CSI 300 Index: Share Price, Chart and Forecast](https://www.zfx.com/academy/csi-300-index/) [Euro Stoxx 50 Index: Share Price, Chart and Forecast](https://www.zfx.com/academy/euro-stoxx-50-index/) [DAX 40 (ex DAX 30): Share Price, Chart and Forecast](https://www.zfx.com/academy/dax-40-index/) [FTSE China A50 Index: Share Price, Chart and Forecast](https://www.zfx.com/academy/ftse-china-a50-index/) [Hang Seng Index: Share Price, Chart and Forecast](https://www.zfx.com/academy/hang-seng-index/) [IBEX 35 Index: Price Share, History and Forecast](https://www.zfx.com/academy/ibex-35-index/) [Nasdaq 100 Index: Share Price, Chart and Forecast](https://www.zfx.com/academy/nasdaq-100-index/) Stock Price [Coca-Cola Stock Price Chart, History and Forecast](https://www.zfx.com/academy/coca-cola-stock-price/) [China Mobile Stock Price Chart, History and Forecast](https://www.zfx.com/academy/china-mobile-stock-price/) [Cisco Stock Price – CSCO Price Today, History, Prediction](https://www.zfx.com/academy/cisco-stock-price/) [PepsiCo Stock Price – PEP Price Chart, History, Prediction](https://www.zfx.com/academy/pepsico-stock-price/) [Oracle Stock Price – ORCL Price Today, History, Prediction](https://www.zfx.com/academy/oracle-stock-price/) [Verizon Stock Price – VZ Price Today, History, Prediction](https://www.zfx.com/academy/verizon-stock-price/) [Visa Stock Price – V Price Chart, History, Prediction](https://www.zfx.com/academy/visa-stock-price/) [Disney Stock Price – DIS Price Chart, History and Forecast](https://www.zfx.com/academy/disney-stock-price/) [Boeing Stock Price – BA Price Chart, History, Prediction](https://www.zfx.com/academy/boeing-stock-price/) [Microsoft Stock Price – MSFT Price Chart, History, Prediction](https://www.zfx.com/academy/microsoft-stock-price/) Commodity [Silver XAGUSD: Price Chart, Forecast and How to Invest](https://www.zfx.com/academy/silver/) [Gold XAUUSD: Price Chart, Forecast and How to Invest](https://www.zfx.com/academy/gold/) [Brent Oil Futures: Price Chart, Overview and How to Invest](https://www.zfx.com/academy/brent-oil-futures/) [WTI Oil Futures: Price Chart, Overview and How to Invest](https://www.zfx.com/academy/wti-oil-futures/) [Copper: Price Chart, Overview and How to Invest](https://www.zfx.com/academy/copper/) [Natural Gas: Price, Chart, Overview and How to Invest](https://www.zfx.com/academy/natural-gas/) [Platinum: Price Chart, Overview and How to Invest](https://www.zfx.com/academy/platinum/) [Palladium: Price, Charts, Overview and How to Invest](https://www.zfx.com/academy/palladium/) [Brent Oil: Price Chart, Overview and How to Invest](https://www.zfx.com/academy/brent-oil/) [WTI Oil: Price, Charts, Overview and How to Invest](https://www.zfx.com/academy/wti-oil/) Forex [NZDJPY: New Zealand Dollar-Yen Rate, Chart and Forecast](https://www.zfx.com/academy/nzd-jpy/) [NZDCAD: New Zealand-Canadian Dollar Rate, Chart, Forecast](https://www.zfx.com/academy/nzd-cad/) [AUDCHF: Australian Dollar-Swiss Franc Rate, Chart, Forecast](https://www.zfx.com/academy/aud-chf/) [EURNZD: Live Euro-New Zealand Dollar Rate, Chart and Forecast](https://www.zfx.com/academy/eur-nzd/) [USD CAD: Live Canadian Dollar-US Dollar Rate, Chart, Forecast](https://www.zfx.com/academy/usd-cad/) [AUDCAD: Exchange Rate, Conversion, Chart and Forecast](https://www.zfx.com/academy/aud-cad/) [GBP USD: Live Pound-Dollar Exchange Rate, Chart and Forecast](https://www.zfx.com/academy/gbp-usd/) [CHFJPY: Live Swiss Franc-Japanese Yen Rate, Chart, Forecast](https://www.zfx.com/academy/chf-jpy/) [GBPCHF: Pound to Swiss Franc Exchange Rate, Chart, Forecast](https://www.zfx.com/academy/gbp-chf/) [GBP CAD: British Pound-Canadian Dollar Rate, Chart, Forecast](https://www.zfx.com/academy/gbp-cad/) A to Z Academy / 4. Practical Guide to Forex Trading # 22\.What is Spread and Pip? November 12, 2020 01:37 Forex is a global market, and traders constantly look for opportunities to make money. One way to do this is to find markets where the price is not yet settled and spread your investments across these markets to maximize profits. This is called pip trading. Pip stands for price per unit, so when you spread your investment across multiple contracts, each with its own pip value, you are essentially trading individual currency units. ## What are Pips in Forex? Forex trading is a highly popular investment opportunity that allows traders to profit by exchanging currencies. For traders to make informed decisions, they need to understand what pips are and how they can be used in the market. Pips are units of measure used in Forex. They are often used to indicate the price movement of one currency unit against another and can be very useful for forex traders. They serve as a way for traders to measure the difference between two currencies and provide valuable information about market movements. Because pips change frequently, it is important for forex traders to have a solid understanding of them to make sound decisions. ### **What is the difference between Pip and Spread in Forex? Forex is a global market where different currencies are traded against each other. Pip and spread are two of the most common forex trading terms. Pip (symbol: “p”) is the smallest currency trading unit used to quantify the movement in the currency. The spread is the difference between the bid and offer prices for a particular currency pair. Generally speaking, in EUR/USD, the fourth decimal place is the pip unit, while in USD/JPY, due to the pricing of the Japanese Yen, the second decimal place is the pip unit. When the EUR/USD appreciates from 1.1840 to 1.1849, we could say that the euro was up nine (9) pips against the dollar. When it comes to the spread cost, the spread of EUR/USD from forex brokers is about three pips or less. This means that, for the standard contract, the spread cost for one contract (commonly defaulted as 100,000 units) is \$30. ### New investors should be aware of the difference between the bid price and the asking price of those currency pairs in FX trading. This is just a normal market condition. For example, there is a difference between bid-ask prices in stock trading and real-time streaming of stock quotes. ![What is Spread and Pip? Different between Basis Point \& Pip \\| ZFX](https://www.cdn-zfx.com/wp-content/uploads/2020/12/bH66V76C-%E5%9B%BE%E7%89%877-300x237.png) ### What is a Basis point (BP)? A Basis point, also known as BP, is a financial term that refers to the smallest unit of a financial instrument, such as stocks, bonds, or currencies. The basis point is also used in accounting to measure the price movement of an asset or liability over time. Financial institutions and investors use basis points to calculate and determine the value of investments. ### Difference between PIP (P) and Basis Point (BP) In the forex market, Pip is a unit of calculation that refers to 1/100 of a currency unit. BP might be mistaken as Pip by new investors in forex trading. In practice, BP will not be used in forex trading because it describes changes in bonds and interest rates. Basis points are important because they help analysts and traders calculate investment risks. For example, if you own one (1) share of stock and the stock’s value increases by 100 basis points (1%), your share would be worth \$1.01 rather than \$1.00. A basis point equals 0.01%. For example, after the meeting of the FOMC, when it comes to rate hikes or rate cuts, 25-basis-points are often mentioned in the Fed’s decision. Apart from the BP and PIP, Tick and Point are very common in expressing price movement, but newbies may easily misunderstand those differences. ### Why is there an extra decimal place in the currency pairs quotation? As mentioned above, a pip is a minimum change in price movement in the forex market. Still, most trading platforms now display an extra decimal place on the quote, which may cause misunderstanding of the traditional definition of 1 pip. In fact, this is related to the development of the financial markets. Since the financial crisis in 2008, the technology and communication network have become increasingly advanced, and mind-boggling amounts of data can be processed at the same time efficiently. In addition, financial companies generally attach great importance to information technology developments so that now brokers can be inter-connected to the forex market in many ways. With faster and more efficient transfers of data information, the market quote has become more refined and can offer 1 / 10 units of 1 pip, making the spread narrower correspondingly. This benefits investors because a narrower spread means less trading cost. The competition among forex brokers is still fierce, so most of them quote this extra decimal place to clients. As a result, investors may interpret one pip differently over time. ### Next Article: [23\. What is pip value?](https://www.zfx.com/academy/23-what-is-pip-value/) —— ##### About [ZFX (Zeal Capital Market)](https://www.zfx.com/) - The Best Trading Platform Award 2019 from Financial Weekly, Regulated by FCA & FSA. - 100+ trading assets, including [Forex](https://www.zfx.com/products/forex/), [Stocks](https://www.zfx.com/products/shares/), [Indices](https://www.zfx.com/products/indices), [Gold, Crude Oil](https://www.zfx.com/products/commodities/), etc. - [3 types of trading accounts](https://www.zfx.com/accounts/) to meet the needs of every customer - 0 commission, low spread, leverage ratio up to 1:2000 - Powerful trading platform that executes 50,000 orders/s - Open an account with a minimum deposit of \$50 - 24-hour [Customer Service](https://www.zfx.com/about-zfx/contact-us/) [![What is Spread and Pip? Different between Basis Point \& Pip \\| ZFX](https://www.cdn-zfx.com/wp-content/uploads/2020/06/tdqybsvb-photo_2020-09-17_18-07-24.jpg)](https://my.zfx.com/login/index) —— Risk Warning: The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control. PREVIOUS [20\. Why use leverage?](https://www.zfx.com/academy/20-why-use-leverage/) NEXT [23\.What is a pip value?](https://www.zfx.com/academy/23-what-is-pip-value/) Knowledge is POWER Never miss an opportunity to learn and grow as a trader. Join the ZFX Academy mailing list to be the first to know about our next webinar, article or guide. 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Readable Markdown	Forex is a global market, and traders constantly look for opportunities to make money. One way to do this is to find markets where the price is not yet settled and spread your investments across these markets to maximize profits. This is called pip trading. Pip stands for price per unit, so when you spread your investment across multiple contracts, each with its own pip value, you are essentially trading individual currency units. ## What are Pips in Forex? Forex trading is a highly popular investment opportunity that allows traders to profit by exchanging currencies. For traders to make informed decisions, they need to understand what pips are and how they can be used in the market. Pips are units of measure used in Forex. They are often used to indicate the price movement of one currency unit against another and can be very useful for forex traders. They serve as a way for traders to measure the difference between two currencies and provide valuable information about market movements. Because pips change frequently, it is important for forex traders to have a solid understanding of them to make sound decisions. ### **What is the difference between Pip and Spread in Forex? Forex is a global market where different currencies are traded against each other. Pip and spread are two of the most common forex trading terms. Pip (symbol: “p”) is the smallest currency trading unit used to quantify the movement in the currency. The spread is the difference between the bid and offer prices for a particular currency pair. Generally speaking, in EUR/USD, the fourth decimal place is the pip unit, while in USD/JPY, due to the pricing of the Japanese Yen, the second decimal place is the pip unit. When the EUR/USD appreciates from 1.1840 to 1.1849, we could say that the euro was up nine (9) pips against the dollar. When it comes to the spread cost, the spread of EUR/USD from forex brokers is about three pips or less. This means that, for the standard contract, the spread cost for one contract (commonly defaulted as 100,000 units) is \$30. New investors should be aware of the difference between the bid price and the asking price of those currency pairs in FX trading. This is just a normal market condition. For example, there is a difference between bid-ask prices in stock trading and real-time streaming of stock quotes. ![What is Spread and Pip? Different between Basis Point \& Pip \\| ZFX](https://www.cdn-zfx.com/wp-content/uploads/2020/12/bH66V76C-%E5%9B%BE%E7%89%877-300x237.png) ### What is a Basis point (BP)? A Basis point, also known as BP, is a financial term that refers to the smallest unit of a financial instrument, such as stocks, bonds, or currencies. The basis point is also used in accounting to measure the price movement of an asset or liability over time. Financial institutions and investors use basis points to calculate and determine the value of investments. ### Difference between PIP (P) and Basis Point (BP) In the forex market, Pip is a unit of calculation that refers to 1/100 of a currency unit. BP might be mistaken as Pip by new investors in forex trading. In practice, BP will not be used in forex trading because it describes changes in bonds and interest rates. Basis points are important because they help analysts and traders calculate investment risks. For example, if you own one (1) share of stock and the stock’s value increases by 100 basis points (1%), your share would be worth \$1.01 rather than \$1.00. A basis point equals 0.01%. For example, after the meeting of the FOMC, when it comes to rate hikes or rate cuts, 25-basis-points are often mentioned in the Fed’s decision. Apart from the BP and PIP, Tick and Point are very common in expressing price movement, but newbies may easily misunderstand those differences. ### Why is there an extra decimal place in the currency pairs quotation? As mentioned above, a pip is a minimum change in price movement in the forex market. Still, most trading platforms now display an extra decimal place on the quote, which may cause misunderstanding of the traditional definition of 1 pip. In fact, this is related to the development of the financial markets. Since the financial crisis in 2008, the technology and communication network have become increasingly advanced, and mind-boggling amounts of data can be processed at the same time efficiently. In addition, financial companies generally attach great importance to information technology developments so that now brokers can be inter-connected to the forex market in many ways. With faster and more efficient transfers of data information, the market quote has become more refined and can offer 1 / 10 units of 1 pip, making the spread narrower correspondingly. This benefits investors because a narrower spread means less trading cost. The competition among forex brokers is still fierce, so most of them quote this extra decimal place to clients. As a result, investors may interpret one pip differently over time. Next Article: [23\. What is pip value?](https://www.zfx.com/academy/23-what-is-pip-value/) —— ##### About [ZFX (Zeal Capital Market)](https://www.zfx.com/) - The Best Trading Platform Award 2019 from Financial Weekly, Regulated by FCA & FSA. - 100+ trading assets, including [Forex](https://www.zfx.com/products/forex/), [Stocks](https://www.zfx.com/products/shares/), [Indices](https://www.zfx.com/products/indices), [Gold, Crude Oil](https://www.zfx.com/products/commodities/), etc. - [3 types of trading accounts](https://www.zfx.com/accounts/) to meet the needs of every customer - 0 commission, low spread, leverage ratio up to 1:2000 - Powerful trading platform that executes 50,000 orders/s - Open an account with a minimum deposit of \$50 - 24-hour [Customer Service](https://www.zfx.com/about-zfx/contact-us/) [![What is Spread and Pip? Different between Basis Point \& Pip \\| ZFX](https://www.cdn-zfx.com/wp-content/uploads/2020/06/tdqybsvb-photo_2020-09-17_18-07-24.jpg)](https://my.zfx.com/login/index) —— Risk Warning:** The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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