NDD Glossary
ConceptBeginner

Pip

syn. Point in Percentage

The smallest standard unit of price movement in a currency pair, typically the fourth decimal place (0.0001) for most FX pairs.

Last updated: February 10, 2026
1

For most currency pairs, a pip is 0.0001 (the fourth decimal place).

2

For JPY pairs, a pip is 0.01 (the second decimal place).

3

The value of a pip depends on the lot size and the currency pair.

4

For a standard lot (100,000 units) of EUR/USD, one pip equals approximately $10.

5

Many brokers now offer fractional pip pricing (5 decimal places), called pipettes.