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Pip

The standard unit of price change in forex, usually the fourth decimal place (0.0001), or the second for yen pairs.

A pip is how forex moves are counted. EUR/USD moving from 1.0850 to 1.0860 is a 10-pip move. USD/JPY moving from 150.20 to 150.30 is also 10 pips. Most brokers quote a fifth decimal, a pipette, which is a tenth of a pip.

Pip value depends on lot size and the quote-currency. It is the forex equivalent of tick-value.

Example: on a standard-lot of EUR/USD, one pip is $10. A 25-pip stop risks $250. On a micro-lot, one pip is $0.10 and the same stop risks $2.50.

Related: standard-lot, micro-lot, tick, quote-currency

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