Pip
The standard unit of price movement in forex. For most pairs a pip is 0.0001; for pairs quoted in Japanese yen it is 0.01.
Traders measure stops, targets and daily ranges in pips because it makes moves comparable across pairs. The cash value of a pip depends on your position size and the quote currency.
With real data
One pip on popular pairs (1 standard lot, USD account)
Calculated from price data up to 6 October 2026.
In practice
If EUR/USD moves from 1.0850 to 1.0875, it has moved 25 pips. On one standard lot that is about $250; on a micro lot, about $2.50. If USD/JPY moves from 150.20 to 150.45, that is also 25 pips, because the pip on yen pairs is the second decimal place.
Treating pips as money. A 20-pip stop sounds small, but on two standard lots it is roughly $400. Always convert the stop into cash before you place the trade.
Related terms
Pipette
A fractional pip, one tenth of a pip. It is the fifth decimal…
Pip value
The money gained or lost when price moves one pip for a given…
Lot
A standardised position size. A standard lot is 100,000 units of…
Account currency
The currency your trading account is held in. Profits, losses and…
Ask
The price at which the market will sell to you, so it is the price…
Base currency
The first currency in a pair. In GBP/USD it is the pound. Buying…
Learn more
- What is forex trading? A plain-English guide
- What is a pip in forex? Pips, pipettes and pip value
- Lot sizes explained: standard, mini, micro and nano lots
- How to read a forex signal (and act on it safely)
- Forex risk management: the rules that keep you trading
- Leverage and margin in forex, explained simply
- How to spot forex signal scams on Telegram and social media