Pip Definition

A pip is the smallest standardized price movement in a currency pair, typically the fourth decimal place.

What is a Pip?

For most currency pairs, one pip equals 0.0001, while for pairs involving the Japanese yen, it is usually 0.01.

Pips are used to measure price changes and calculate profit or loss in forex trading.

If EUR/USD moves from 1.0850 to 1.0855, that is a 5-pip move.

A pending order is an instruction to buy or sell an asset once the price reaches a specified level, rather than immediately.

A portfolio is a collection of financial assets, such as stocks, bonds, currencies, or commodities, held by an individual or institution.

Position sizing is the process of determining how much capital to allocate to a specific trade.