Pip
Updated 2026-09-20
Definition
The standard unit of price change: the fourth decimal place on most pairs (0.0001) and the second on yen pairs (0.01).
Why it matters
It lets you measure moves in a comparable way and calculate profits, losses, stops and targets. The money value of a pip depends on position size (lots), the pair and your account currency.
Practical example
EUR/USD moves from 1.1000 to 1.1025: that's 25 pips. With 0.10 lots and a dollar account, each pip is worth about $1, so the gain is about $25.
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Educational content, not financial advice. Trading involves risk.