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The FB pixel is a basically a code (i.e. a cookie) that tracks what your website audience is doing in your site and your funnel. It tracks conversions and provides data that will allow you, as a marketer, to optimize your ads, build your audience, grow your audience, retarget them based on their response in your funnel and optimize your funnel based on market response. 

Here’s a short video on how to install the new FB ads pixel (June 2020 Update).