What is a “pip” for CFDs?

A pip is the increment FXCM uses to account for profits and losses. It is the standard used in the Forex market, in place of "points" or "ticks".

• For Forex instruments (excluding JPY crosses), the "pip" is the second-to-last digit in a price quote.
• For CFD products, the "pip" placement will vary depending on the instrument traded.

The value of a pip depends on the CFD product that you are trading, the currency your account is denominated in, and the size of your trade. You can view the current pip value of any instrument in the Pip Cost area of the Advanced Dealing Rates window (shown below).

The Pip Cost shows how much profit or loss one pip is worth for holding one contract of that instrument. It displays in the currency your account is denominated in.

Since FXCM accounts for profits and losses in pips and automatically adjusts profits and losses into your account's currency, you can trade stock indices in many countries without needing to keep accounts in those countries' different currencies. The Trading Station makes all the conversions for you.