Count Your Pips… Not Your Cash
on
Have you ever wondered how many pips it takes to buy a house?
It’s crazy how much trading has skewed our perception of money, and how we think in terms of the price of something.
In case anyone has forgotten trading terminology over this much-deserved holiday break, a price interest point (pip) is the smallest number in a currency pair in the forex market.
Although pips are the smallest (yet most fundamental) unit of measure, the slightest change in them can equate to major wins and losses.
So how do we look at the price of a new house or private school for our children in terms of how many pips we need to produce in the stock market to make those specific purchases?