Trading basics

Pip

Also known as: pips, percentage in point

A pip is the smallest standard price increment in forex, usually the fourth decimal place (0.0001) for most currency pairs.

For pairs quoted to four decimals, one pip equals 0.0001; for JPY pairs it's 0.01. Pips standardise how traders measure price moves, spreads and risk. A fractional pip (a 'pipette') is one tenth of a pip.

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