How is the number of pips related to each trade?

<p id="isPasted">The number of pips in a trade isn't a fixed value, but depends on two key factors:</p><p><strong>1. Currency Pair:</strong></p><ul><li><p>Most currency pairs are priced to four decimal places, where one pip represents the smallest price movement -&nbsp;0.0001 for most pairs.</p></li><li><p>Some exotic pairs with smaller price movements might have pips of 0.01.</p></li></ul><p><strong>2. Trade Size (Lot Size):</strong></p><ul><li><p>Each pip has a different dollar value based on the size of your trade.</p></li><li><p>For example, 1 pip in EUR/USD with a 10,000 EUR trade size is worth €10 (0.0001 x 10,000).</p></li><li><p>With a 100,000 EUR trade size, the same 1 pip becomes €100.</p></li></ul><p>Therefore, the number of pips doesn't determine your profit or loss alone. You need to consider both the pip movement and the dollar value per pip based on your trade size.</p>