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Glossary · on a chart

What is a pip?

The usual smallest price step in a currency pair — 0.0001 on most pairs, 0.01 on yen pairs.

← All 36 terms
From 1.0850To 1.0875EMA 15025 pips1.08401.08501.08601.08701.08501.0875123
Illustration — not market data.EMA 150

Step by step

How to read it

  1. 1Price starts at 1.0850.
  2. 2It rises to 1.0875.
  3. 3The distance is 0.0025 — 25 pips. A pip is the fourth decimal on most pairs.

Watch out

Common mistake

Mixing up pips and points. Many platforms show a fifth decimal: 10 of those points make one pip.

Hypothetical numbers

Worked example

  • 1.0850 → 1.0875 = 0.0025 = 25 pips.
  • Yen pair: 150.20 → 150.45 = 25 pips (0.01 each).

In one line

Definition

The smallest usual price step in a currency pair — 0.0001 for most pairs, 0.01 for yen pairs.

Check yourself

Check yourself

EUR/USD moves from 1.1000 to 1.1040. How many pips?

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