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ForexF
Fractional Pip
A fractional pip, also called a pipette or point, is one-tenth of a standard pip in forex trading. While a pip is the fourth decimal place for most currency pairs, a fractional pip is the fifth decimal place, allowing for more precise pricing and tighter spreads.
Example
“The EUR/USD price was quoted at 1.08523, where the '3' represents a fractional pip — the broker's five-decimal pricing allowed the trader to get 0.3 pips better execution than a four-decimal quote of 1.0852.”