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Forex Basics

Pipette

A fractional pip, representing the fifth decimal place in most currency pairs.

Full Definition

A pipette is one-tenth of a pip, representing more precise price movements. It appears as the fifth decimal place for most pairs (e.g., 1.10505) or the third decimal place for JPY pairs. Pipettes allow brokers to offer tighter spreads and more accurate pricing. While traders primarily think in pips, pipettes provide additional granularity for entry and exit points.

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