A pip (percentage in point) is the usual smallest move quoted in a currency price. For most pairs it is the fourth digit after the decimal point, so EURUSD moving from 1.0850 to 1.0851 has risen one pip. For pairs quoted against the Japanese yen it is normally the second digit, so USDJPI moving from 149.50 to 149.60 has risen ten pips. Pips matter because stop-loss distances, take-profit targets and lot sizes are all measured in them.
Forex glossary
Pip
Related term
Pipette
A pipette, sometimes called a point, is one tenth of a pip. Brokers show five decimal places on most pairs and three on yen pairs so that prices can be quoted m…
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