Glossary
Pip: meaning, example and why it matters
The standard small price step in forex: 0.0001 for most pairs and 0.01 for pairs quoted in yen. It is used to measure price moves and calculate profit or loss.
Worked example
EUR/USD moving from 1.0800 to 1.0825 is 25 pips. USD/JPY from 150.00 to 150.40 is 40 pips.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Pips are the standard way to measure a move and to work out profit and loss per lot.
Related terms
See it in practice
Frequently asked questions
Is a pip the same size on every pair?
No. It is 0.0001 on most pairs and 0.01 on pairs quoted in yen.
Is this page investment advice?
No. Pip is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.