Basics
What is Pip?
By the verify.trading team · Last reviewed · How we write
Key points
- 0.0001 for most pairs, 0.01 for yen pairs.
- Pip value depends on lot size and account currency.
- A pipette is one tenth of a pip.
Pip explained
Traders measure stops, targets and profit in pips because it gives one yardstick across pairs. A move in EUR/USD from 1.0850 to 1.0860 is 10 pips.
Many brokers also quote a fractional pip, or pipette, which is a tenth of a pip. The money value of a pip depends on the pair, the position size and your account currency, which is what a pip value calculator works out.
Example
One standard lot of EUR/USD (100,000 units) moves 10 USD for every pip, so a 20 pip move is 200 USD.
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