What Is a Pip in Forex?

A pip is the standard unit of price movement in a currency pair. For most pairs it is the fourth decimal place (0.0001); for pairs quoted in Japanese yen it is the second (0.01).

Example

If EUR/USD moves from 1.0850 to 1.0870, it has moved 20 pips. If USD/JPY moves from 150.00 to 150.35, it has moved 35 pips.

Pip value

On a standard lot of 100,000 units, one pip on a pair quoted in USD, such as EUR/USD, is worth $10. For other pairs the value depends on the exchange rate.

Find exact values with the pip value calculator. Related: lot size, position sizing, forex trading journal. See the trading glossary.