## What is a pip?

I am also interested who and how decides its value?

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13 May 2013 by

A pip (percentage in point) is the smallest increment in a currency pair, in 4 digit brokers. Nowadays, with 5 digit brokers, those are called pipettes. But for the sake of simplicity, let's assume a pip is the smallest price increment quoted to the fourth decimal point in the forex market.

The formula to calculate its value is: (one pip / currency exchange rate) * (base currency).
For example, with USD/JPY: (0.01 / 101.80) * USD100,000 = 9.82USD.

PAPA 13 May

Why for some currencies pip is 0.01 and for others is 0.0001 ?

In all pairs involving the Japanese Yen (JPY), a pip is the 1/100th place -- 2 places to the right of the decimal. In all other currency pairs, a pip is the 1/10,000 the place -- 4 places to the right of the decimal.

PAPA 14 May

Thank you very much! Can you copy both of your comments in the "Answer" section below, so I can vote for them?

Pips (pips), you can also find the name of the item (point) - the minimum price movement on Forex.

A pip (percentage in point) is the smallest increment in a currency pair, in 4 digit brokers. Nowadays, with 5 digit brokers, those are called pipettes. But for the sake of simplicity, let's assume a pip is the smallest price increment quoted to the fourth decimal point in the forex market.

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14 May 2013 by

In finance, specifically in foreign exchange markets, a percentage in point (pip) is a unit of change in an exchange rate of a currency pair.

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14 May 2013 by

Pip means "Price interest point". Is the 0.0001 or 0.01 price change

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28 Nov. 2014 by

This minimal change price distance.

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29 Nov. 2016 by