Pip
ForexDefinition
A pip (Percentage in Point) is the smallest standard price movement in a currency pair, equal to 0.0001 for most pairs (or 0.01 for JPY pairs). Pips are the primary unit used to measure profit and loss in forex investing. The monetary value of a pip depends on the lot size of the position.
Example in context
If EUR/USD moves from 1.0850 to 1.0900, it has moved 50 pips. With a standard lot (100,000 units), each pip is worth approximately $10, so the move is worth $500.
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