What Does Pip Mean in Forex Trading?
In forex trading, a pip is the smallest unit of price movement between two currencies. It’s used to measure changes in exchange rates, calculate profits or losses, and manage trading strategies effectively.
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Abstract:The broker has seen a massive jump in its financial performance in the past few years.

It is now shifting its focus from CFDs to the stockbroking business.
The UK subsidiary of Trading 212 has released its financials for 2021, ending another year with some impressive figures. According to the latest Companies House filing, the broker ended last year with total revenue of more than £94 million, which is a yearly increase of 74 percent.
Additionally, the pre-tax profits of the company soared to almost £56 million last year, compared to the previous years £26.96 million. After evaluating the annual taxes, it generated a net income of £45.29 million.
However, the administrative cost of the company soared by 56 percent to £42.4 million, mostly due to increased staff and scaling expenses. Further, it suffered a significant cost for the inter-company service with another sister company.
It is to be noted that the numbers only represent the business of Trading 212 UK Limited, which is the FCA-regulated subsidiary of the similarly named group. The umbrella company, Trading 212 Group Limited, witnessed a revenue jump of 318 percent in 2020, generating £124.1 million. It netted £10.1 million in income that year.
Move to Stockbroking
Trading 212s UK subsidiary offers a stockbroking platform and trading services with the contract for differences (CFDs) instruments. It serves clients residing both in the UK and the European Union.
In addition, the broker highlighted that it operated for the first 5 months of 2021 on a spread-revenue model, but afterwards ended back-to-back hedging to better manage its risks.
“Trading 212 now directly manages the market risks of its open CFD positions with clients based on defined and approved risk parameters on each product and asset class, hedging exposures outside of these with reputable third parties,” the companys filing stated.
Furthermore, the broker revealed that it ended the year with £2.9 billion in client money and asset balances, compared to £2.1 billion at the beginning of the year. It credited this growth to the broader market trends and growth and also to its growing brand value.
“While operating both a CFDs and a stockbroking platform, T212 continues to shift its focus towards stockbroking,” the UK broker added.

Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

In forex trading, a pip is the smallest unit of price movement between two currencies. It’s used to measure changes in exchange rates, calculate profits or losses, and manage trading strategies effectively.

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