Trader's Glossary


A pip (or percentage in point) is the smallest unit when describing the value of a currency pair. This is usually the fourth decimal place, or 1/10,000th of the quote currency in a pair. In the case of the Japanese yen it is the second decimal place, or 1/100th of the quote currency in a JPY pair. Nowadays many currency pairs are calculated to five decimal places, this fifth decimal place is often referred to as a ‘pipette’.