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Home/Glossary/Pip

Forex and CFDs · Rookie

Pip

By Omer Rapaport · Content updated 11 September 2026

What does Pip mean?

A pip is a conventional unit of forex price movement. It is typically 0.0001 for many pairs and 0.01 for yen-quoted pairs.

Example

EUR/USD moving from 1.0800 to 1.0820 has moved 20 pips.

Illustrative example; not a provider’s quoted offer.

Why it matters for prop traders

Pip value in money depends on trade size, the pair and account-currency conversion.

Sources and further reading

The following primary sources support the terminology. Provider rules describe their own products and may change.

  • OANDA - Pips and pipettes

Related terms

  • Currency pair
  • Pipette
  • Contract for difference
← All 181 terms

Frequently asked questions

What determines the monetary value of a pip?

Pip value in money depends on trade size, the pair and account-currency conversion.

Sources: OANDA - Pips and pipettes

What is a practical example of Pip?

Illustrative example: EUR/USD moving from 1.0800 to 1.0820 has moved 20 pips.

Sources: OANDA - Pips and pipettes

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