Forex
Pip
The smallest standard price move in a currency pair — usually the fourth decimal place.
Also known as: percentage in point, price interest point
Updated June 2026
A pip is the standard unit of price movement in foreign exchange. For most pairs it’s the fourth decimal: if EUR/USD moves from 1.1050 to 1.1051, that’s one pip.
Why traders care
Pips standardise how gains, losses and spreads are quoted across pairs. Position size × pip value tells you what each pip is worth in your account currency.
Exceptions
Yen pairs (e.g. USD/JPY) quote to two decimals, so a pip is the second decimal. A “pipette” is one-tenth of a pip, used for finer pricing.