Pips explained

A point in percentage – or pip for short – is a unit that measures price change in a forex pair. It’s the smallest possible move that a currency price can change, which is the equivalent of a ‘point’ of movement. Pips are typically measured to the fourth decimal place for most currency pairs (0.0001) being 1/100 of 1%, except for those involving the Japanese yen, which are measured to the second decimal place (0.01). Watch our explainer video: What’s a pip worth in forex trading?