When you view a forex quote like EUR/USD at 1.08456, you should know that the numbers that appear after the decimal point are extremely important and aren't just random numbers. They are actually the precision markers that can either help your trading account or hurt it. Each decimal point signifies a unit price movement, and understanding what they mean will be the determining factor of whether you're able to trade profitably or lose money. In forex trading, decimals refer to the digits that appear after the decimal point in the currency pair quote. Usually, brokers will display prices in four decimal points or five decimal points, and this is by design. It exists because the forex market moves in small increments, thus needing traders to be able to see those micro-movements to make informed decisions. Understanding the Structure of a Forex Quote All forex quotations adhere to a consistent structure comprising paired currencies. The first currency indicates a base cur...