Home / Forex Glossary / Pip
- Forex Resources
- Forex Trading Tutorials
- Metatrader Platform
- Forex Trading Tools
- Forex Glossary
- Forex Articles
Pip
It is a term which represents an abbreviation of the percentage in point and means the smallest value of the unit that the exchange rate is able to produce during the movements of the prices. It refers to the fourth decimal point of the currencies in the Forex market. And the least move that gives a pip is 0.0001, which stands for 1/100th of 1 percent and is usually referred to as one basis point.
The only exception is the Japanese Yen that refers to two decimal places.