The Lab

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Worked Example for EUR/USD - Pip location is the fourth decimal place:

ComponentValueMantissaExponent
Spot1.10334110334-5
FwdPts25.75125751-3
All-in1.105915111059151-7



Another example (correct):

ComponentValueMantissaExponent
Spot1.10334110334-5
FwdPts25.75025750-3
All-in1.105915011059150-7


Versus (wrong, as it implies pip is at the fifth decimal place):

ComponentValueMantissaExponent
Spot1.10334110334-5
FwdPts25.752575-2
All-in1.105915011059150-7