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'Pips', 'spreads', and 'pipettes', are all common forex terms that new aspiring forex traders need to wrap their heads around. Example: Consider a trader who buys EUR USD at 1.1200 and sets a stop-loss order at 1.1180, risking 20 PIPs. If each PIP is worth $10, the trader effectively risks $200 on this trade. This calculation is essential in defini