Glossary · from the DESK dictionary
Pip
The smallest standardized unit of price movement for a currency pair, usually the fourth decimal place.
In plain words
The forex market's 'penny unit' — the smallest typical price move.
Example
If EUR/USD moves from 1.1050 to 1.1051, that's a one-pip move.
What it means for traders
The standard unit for measuring price moves and profit/loss in forex trading.
Common pitfalls
With highly leveraged positions, even a few pips of movement can mean substantial gains or losses.
Related terms
Currency Pair · Percentage in Point (Pip) · Pip Value
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.