Gold, forex and crypto
Pip
Definition
A pip is the standard unit of price change in a currency pair: the fourth decimal place (0.0001) for most pairs and the second (0.01) for pairs quoted in Japanese yen. On a pair quoted to four decimals, a move from 1.1000 to 1.1025 is 25 pips. Start with our guide to forex trading for beginners.
Example
Say EUR/USD falls from 1.0850 to 1.0812: that is 38 pips, since each 0.0001 is one pip. On USD/JPY, a rise from 150.20 to 150.75 is 55 pips, because yen pairs count pips at the second decimal. Many platforms add a fifth decimal on EUR/USD, so a move from 1.08500 to 1.08505 is only half a pip.
Hypothetical numbers, for illustration only.
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