Pip
Pip — The smallest unit of price change in a forex pair — the 4th decimal for most pairs, 2nd decimal for JPY pairs.
- Quick definition: The smallest unit of price change in a forex pair — the 4th decimal for most pairs, 2nd decimal for JPY pairs.
- Category: Forex Basics
Full Definition
A pip is 0.0001 for most forex pairs (EURUSD 1.1234 → 1.1235 = 1 pip). For JPY pairs, a pip is 0.01 (USDJPY 150.12 → 150.13 = 1 pip). For XAUUSD (gold), traders often quote in points where 1 point = $0.01, so 1 pip ≈ $0.10. Pip value depends on lot size and the quote currency.
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