A pip is short for "price interest point," and it's the smallest unit of price movement in the Forex market. For example, if the exchange rate of the EUR/USD pair changes from 1.1000 to 1.1001, that's a movement of one pip. Think of it like a tiny step in the right direction - or wrong, depending on your trade!
Now, let's talk about how to calculate pips in Forex. It's quite simple, really. The formula is: (Current Price - Previous Price) x Exchange Rate = Pip Value. Easy peasy, right?
