Pipettes
Pipettes are a financial term used to describe a unit of measurement for the price of a security or asset. It is the smallest increment of price movement that can be quoted or traded in the market. A pipette is one-tenth of a pip, which is the smallest unit of price movement in the foreign exchange market. In the forex market, a pipette is the equivalent of a tick in the stock market.
History of Pipettes
The term pipette was first used in the early 2000s when the foreign exchange market began to move away from the traditional four-decimal pricing system. This new system allowed for more precise pricing and allowed traders to take advantage of smaller price movements. As the market evolved, the term pipette was adopted to describe the smallest unit of price movement.
Comparison Table
| Unit | Equivalent |
|---|---|
| Pip | 0.0001 |
| Pipette | 0.00001 |
Summary
Pipettes are a financial term used to describe the smallest unit of price movement in the foreign exchange market. They are one-tenth of a pip and are used to measure the price of a security or asset. Pipettes allow traders to take advantage of smaller price movements and provide more precise pricing. For more information about pipettes, traders can visit websites such as Investopedia, Forex.com, and FXCM.
See Also
- Pips
- Ticks
- Spread
- Bid Price
- Ask Price
- Lot
- Leverage
- Margin
- Slippage
- Forex Trading
