Forex FX: Definition, How to Trade Currencies, and Examples
For most FX markets, prices are offered up to five decimals but the first four are the most important. The number to the left of the decimal point indicates one unit of the counter currency, in this example, it is the USD and therefore is $1. The third and fourth digits represent fractions of a cent and are referred to as pips. On a longer-term basis, one major driver of Forex prices are interest rates from the related economy,...