When the Eurozone has an fascination level of 4% and the U.S. has an curiosity charge of 3%, the trader owns the upper fascination level currency in this instance. A pip would be the smallest value increment (fraction) tabulated by forex markets to ascertain the cost of a forex pair. https://www.icm.com/lp/ar/landing_pages/2020/trade-with-global-multiregulated-broker