WHAT IS A PIP?
- A "pip" is the smallest whole increment in any Forex pair.
- For pairs quoted in 3 decimal points a pip increment is based on the second decimal.
- For pairs quoted in 5 decimal points a pip increment is based on the fourth decimal, like the EURUSD below.
- EURUSD: A movement from 1.362(9)8 to 1.363(0)8 is a 1 pip move
- In USD/JPY, a movement from 104.4(7)1 to 104.4(8)1 is 1 pip
So how much is a pip worth? This is determined by the currency of your account and the pair you are trading.