What is Pip?
Updated October 17, 2026
A pip is the smallest standard price move in a currency pair, usually the fourth decimal place.
A pip is how traders measure price moves. On most pairs like EURUSD it's 0.0001, so a move from 1.1000 to 1.1001 is one pip.
Yen pairs are different. There a pip is the second decimal, so 150.00 to 150.01 is one pip.
Pips matter because your profit or loss is counted in them. How much each pip is worth in money depends on your lot size.
Example
EURUSD goes from 1.0850 to 1.0870. That's a 20 pip move.
Questions people ask
How much is one pip worth?
On a standard lot of EURUSD it's about $10, on a mini lot about $1, and on a micro lot about 10 cents.
Is a pip the same on gold?
No. Gold is quoted differently, and brokers define its pip in their own way, so check your platform's contract details.
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