The smallest price change that a given exchange rate can make. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point - for most pairs this is the equivalent of 1/100 of one percent, or one basis point.


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For example, the smallest move the USD/CAD currency pair can make is $0.0001, or one basis point. The smallest move in a currency does not always need to be equal to one basis point, but this is generally the case with most currency pairs.

  1. Exchange Rate

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  2. Mini-Lot

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  3. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote ...
  4. Currency

    A generally accepted form of money, including coins and paper ...
  5. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  6. Performance Index Paper - PIP

    Short-term paper on which the rate of interest is denominated ...
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