Glossary
Pip
A pip is the standard smallest price move in most currency pairs — 0.0001 for most pairs, and 0.01 for pairs involving the Japanese yen.
A pip (“percentage in point”) is how traders measure price movement in forex. For most currency pairs a pip is a move of 0.0001; for pairs that include the Japanese yen, a pip is 0.01. If EUR/USD moves from 1.1000 to 1.1001, that’s one pip.
Many brokers quote an extra decimal — a point or “pipette” — equal to one tenth of a pip, so MT4 may show 5-digit prices where the last digit is a point, not a full pip.
The cash value of a pip depends on your trade size. Work it out with our pip calculator.
Related terms
Back to the full MT4 & forex glossary. Trading is high-risk — see our risk warning.