Pip

A pip is the standard small step a price moves in, the fourth decimal place on most currency pairs.

On EURUSD a move from 1.1050 to 1.1051 is one pip. On pairs quoted with the yen, such as USDJPY, the pip is the second decimal place, so 150.25 to 150.26 is one pip.

Most brokers quote one extra digit after the pip, called a point or a pipette. A price of 1.10505 is showing half a pip. What a pip is worth in money depends on your position size, not on the pair alone.

Also called: what is a pip, pip meaning

A definition, not financial advice. Trading carries a risk of loss.