In foreign exchange transactions, "points" are used as the unit, and Pip, Tick, and Point are all translated into Chinese meaning points. Which one is the correct "point" in foreign exchange transactions? Pip Pip is the abbreviation of percentage in point (or price interest point) in English. It is the "point" that we can see most often. It is the "point" in our usual transactions, representing the smallest unit that can fluctuate in currency pairs. , which is the basic unit of exchange rate change. Since the beginning of the twentieth century, brokers have used mantissa points (five decimal places) to quote prices. Brokers advertise mantissa points to enable traders to obtain lower bid-ask spreads and thus take advantage of smaller price fluctuations. In accordance with current market practice, brokerage quotes are usually four digits after the decimal point, and "points" are calculated from the last digit. Specifically, for example, if USD/RMB rises from 6.6212 to 6.6213, we can say that the USD/CNY exchange rate has risen by 1 point, and from 6.6212 to 6.222 is an increase of 10 points. The quotations of most currencies are four digits after the decimal point, but the currency pairs involving the Japanese yen are special, and are only accurate to two digits after the decimal point. At this time, the second digit after the decimal point corresponds to a point, such as USD/JPY rose from 110.32 to 110.33, which we call an increase of 1 point. Japanese yen quotations are only accurate to two decimal places point Some professional traders do not say pip, but point. Some places regard the two as the same concept, and sometimes 1 point=0.1 pip. This is because in some brokers, the way of quoting is different. They do not use the quoting method of "4" and "2", but the quoting method of "5" and "3". At that time, its last digit is no longer pip, but should be point, and one point is one-tenth of pip. In fact, the most common expression of "point" is pip, which corresponds to the quotation method of "4" and "2", and point is the real "last digit", when the quotation is "4" "2" ", pip and point are the same. In other quotation methods, pip remains unchanged (it is the number in the position of "4" or "2"), but point is uncertain, and what is certain is that it is a quotation The "last digit" position. Point is widely used in stock transactions, and it is also the smallest trading unit in stocks. Tick The translation of Tick is slightly different. It literally translates to the sound of a clock "tick". This is actually a very vivid word, which represents the minimum price change of the ticking point. Some people describe tick as a "new price" event. A tick refers to a transaction event recorded in the computer. It can be one point or many points, or even no point without price deviation. Tick charts, also known as lightning charts and point-line charts, are charts that list and display every transaction in the market. The so-called Tick-level data means that every price change is recorded. Usually, this precision data is used when quantitative trading is adopted. Tick is more common in futures trading and is the smallest unit of change in futures trading.
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