FX spot prices are usually quoted to between 4 and 6 significant figures. USD, the most frequently traded currency pair, has seen rates such as 0. The number of decimals does not vary for a particular currency pair according to movements in the rate, except in the case of devaluations. The bid price is where the bank is willing to buy CCY1 and the offer price is where the bank is willing to sell CCY1. In this case, the bank is willing to buy EUR against USD at 1.
0345 and is willing to sell EUR against USD at 1. The difference between the bid and the offer is called the spread. It is market convention always to talk about what you are doing with CCY1. JPY”, they are buying USD and selling JPY. A trader would therefore quote the bid and offer in this example as “45 47”.
GBP is displayed in a slightly different way from most other currency pairs in that although one pip is worth 0. 0001, the rate is often displayed to five decimal places. The fifth decimal place can only be 0 or 5 and is used to display half pips. Many trading systems display the half pip digit in a smaller font than the two main pip digits.