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The term “pip” refers to the smallest whole unit price move that an exchange rate can make. A #pip is equivalent to 1/100 of 1% or one basis point which makes it the fourth decimal place when reading currency pairs. For example, if the EUR/USD moves from 1.1050 to 1.1051, that constitutes a rise of one pip. An interesting fact that most people don’t know about is that the word pip is actually an acronym and stands for “percentage in point” or “price interest point.
The term “pip” refers to the smallest whole unit price move that an exchange rate can make. A #pip is equivalent to 1/100 of 1% or one basis point which makes it the fourth decimal place when reading currency pairs. For example, if the EUR/USD moves from 1.1050 to 1.1051, that constitutes a rise of one pip. An interesting fact that most people don’t know about is that the word pip is an acronym and stands for “percentage in point” or “price interest point.
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