Forex basics
What is a pip in forex?
A pip is the small step a currency price moves. For most pairs it is the fourth number after the dot (0.0001). For yen pairs it is the second (0.01).
Pip stands for percentage in point. Traders use it to say how far a price moved, the same way you might say a game was won by 3 points.
If EUR/USD goes from 1.1000 to 1.1025, it moved 25 pips. If USD/JPY goes from 150.00 to 150.40, it moved 40 pips.
How much money one pip is worth depends on how big your trade is. That is what the pip value calculator works out for you.
Count the pips
- 1EUR/USD moves from 1.1000 to 1.1025.
- 2The fourth decimal changed by 25.
- 3That is a 25 pip move.
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This is taught in Grade 1: Market Basics.
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Reviewed 2026-10-04. Education only, not financial advice. Trading involves risk of loss.