A fractional pip is one-tenth of a pip. Fractional pips are sometimes used to more precisely define fluctuations in forex rates.
A sixth digit is used to show fractional pips in forex rates. On forex platforms, fractional pips are often shown in subscript.
Examples of fractional pips using the EURCHF exchange rate (fractional pip shown in italics):
Exchange rate 1: EURCHF = 1.09388
Exchange rate 2: EURCHF = 1.09386
The difference between these two rates is 2 fractional pips, or EURCHF 0.00002. If the amount being traded was 100,000 euros, the difference would come to 2 euros.
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