what is pips in forex

Pips are the smallest unit of price for any currency

A pip is typically equal to 1/100th of a percent, or one basis point

In foreign exchange (FX) trading, pips are the smallest increment that an exchange rate can make

For example, if the EUR/USD currency pair is trading at 1.0950, then one pip would be 0.0001 (1/100th of a percent, or one basis point)

If the price of the EUR/USD moves to 1.0951, then that would be a one pip move

Pips can be used to measure price movements in any currency pair

Most FX pairs are quoted to four decimal places, so one pip is equal to 0.0001

However, there are a few exceptions, such as the Japanese yen pairs (USD/JPY, EUR/JPY, etc.)

which are quoted to two decimal places. In this case, one pip is equal to 0