
What Is a Pip in Trading? Definition, Decimal Places, and Pip Value Calculation
A pip is the smallest standardised price movement in a tradeable instrument. Here is what it means in forex, commodities, and indices, plus how to calculate pip value.
Risk Warning: Forex and CFDs are complex instruments and require knowledge of the risks involved. Losses are likely to exceed potential profits and may exceed your initial deposit. Prices may fluctuate and securities may become valueless. Do not deposit money you cannot afford to lose.
Plain-English definitions of the core CFD and forex mechanics, from spreads and margin to pips, lots, swaps, and slippage.

A pip is the smallest standardised price movement in a tradeable instrument. Here is what it means in forex, commodities, and indices, plus how to calculate pip value.

A lot is a standardised unit of trade size in forex and CFD trading. Here is what standard, mini, and micro lots mean, plus contract sizes across gold, silver, oil, and indices.

A swap is the overnight financing charge or credit applied to a CFD position held past rollover. See live Vanto swap values and how triple-swap day works.

The spread is the difference between the bid and ask price, the built-in cost of opening a CFD position. See live Vanto spreads across forex, gold, and indices.

Margin is the deposit required to open and hold a leveraged CFD position. Learn used margin, free margin, margin level, and how margin calls and stop-outs work.

Slippage is the gap between the price you expected and the price your order actually filled at. Learn positive vs negative slippage and what drives it on MT5.

Leverage is the ratio between a position's size and the deposit behind it. Learn what 1:100 means, how it differs from margin, and how it scales gains and losses.

Hawkish means a central bank leans toward tighter policy and higher rates, dovish toward easier policy. Learn the signal words and why surprises move markets.
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