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What is the difference between foreign exchange bp idea and foreign exchange bp?
BP is the base point. Traders who are new to the foreign exchange industry may make the mistake of taking BP as a "point". In fact, BP generally does not appear in specific foreign exchange transactions. It is used to describe changes in bonds and interest rates.

BP is the smallest unit to measure the change of interest rate of bonds or promissory notes, and 1 basis point is equal to 0.0 1%, that is 1%. For example, when the Federal Reserve raises interest rates, it often says that it will raise interest rates by 25 basis points. This base point is BP, which means an increase of 0.25 percentage points.

Pip is the abbreviation of English percentage in point (or price point of interest), and it is the "point" we often see. It is the "point" in our usual transaction, which represents the smallest unit that can fluctuate in a currency pair, that is, the basic unit of exchange rate change.

Since the 20th century, brokers began to use the mantissa (five decimal places) to quote, and brokers publicized the mantissa, so that traders could get lower bid-ask spreads and take advantage of smaller price fluctuations.

According to the current market practice, the quotation of brokers is usually four decimal places, and the "point" is counted from the last place. Specifically, for example, when USD/RMB rose from 6.62 12 to 6.62 13, we can say that USD/RMB exchange rate rose by 1 point, from 6.62 12 to 6.222, up by 10 point. Most of the currency quotations are four decimal places, but the currency pairs involving Japanese yen are special, only accurate to two decimal places. In this case, the second place after the decimal point corresponds to a point, for example, USD/JPY rises from 1 10.32 to 1 10.33, which is called an increase of 65438+.

You can see more foreign exchange knowledge in the foreign exchange eye.