What is a Pip

A pip, short for "percentage in point," is a standard unit of measurement used in forex (FX) trading to express changes in value between two currencies. For most currency pairs, a pip is the movement in the fourth decimal place (0.0001). However, for JPY pairs, a pip is represented by a change in the second decimal place (0.01).

To calculate the pip value when trading forex CFDs, multiply one pip (0.0001) by the lot size you're trading. For instance, if you're trading a standard lot of 100,000 units on EUR/USD, a one-pip movement equals:

100,000 × 0.0001 = $10 per pip.