A Pip is the smallest standard price increment in forex, usually the fourth decimal place. It is how traders measure gains, losses and spreads.
How traders use it
- For most pairs, one pip is 0.0001.
- Pip value depends on the position size.
- Used to quote spreads and stop distances in forex.
See it in dtcharts
See it all in action in the dtcharts terminal — practice risk-free with paper trading.