The conversation between human and AI assistant.
What is the difference between a basis point and pip?
I see. Can you give me an example of when both basis points and pips might be used in the same context?
Sure, one example could be a currency trading strategy where the investor is looking at both the change in the value of a currency pair over time (measured in pips) and the interest rate differential between the two currencies in the pair (measured in basis points). By considering both of these factors, the investor can make more informed trading decisions.