As a firm that specializes in foreign currency, GAIN Capital’s business model depends mainly on commissions that it charges on the bid-ask spread in a currency pair. In currency the bid-ask spread is expressed as pips, reflecting not only the small margins that currency pairs tend to offer but also the lack of any standard notation. In this market every asset uses a different pair of currencies, so “pips” is the only standard way of discussing the price of every asset. So, for example, if the currency pair EUR/USD was trading at 1.0000 to sell and 1.0005 to buy, the spread would be 5 pips. GAIN Capital would charge its commission based on this spread.