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Pip

In one line: A tiny standard step in a currency price, used to count forex moves.

In forexThe currency market., prices move in tiny steps called pips. For most pairs a pip is the fourth decimal place (0.0001). For pairs with the Japanese yen it is usually the second decimal (0.01).

Example: EUR/USD goes from 1.1000 to 1.1025. That is 25 pips. How much money a pip is worth depends on your position sizeHow much you buy or sell in one trade., see Lot and Position sizing.

Related

Sources & studies

  1. Investopedia (secondary): Pip

Trading termsLotForex (currencies)

Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.