A pip ("percentage in point") is the standard smallest unit a currency pair moves. For most pairs it is the fourth decimal place; for yen pairs it is the second. Traders measure gains, losses, and spreads in pips so results are comparable across pairs.
Forex Term
Pip
The standard smallest price move of a currency pair.
Example
If EUR/USD moves from 1.1050 to 1.1051, that is a one-pip move.
Related Terms
Recommended Brokers
IC Markets
Best ECN Execution
Visit IC Markets
Trading Forex and CFDs involves a significant risk of loss.
Tickmill
Best Low Commission
Visit Tickmill
Trading Forex and CFDs involves a significant risk of loss.
Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.