Pip (Forex)

The smallest standard price increment in foreign exchange trading, typically the fourth decimal place for most currency pairs (0.0001). For USD/JPY and other yen pairs, a pip is the second decimal place (0.01). The term stands for "percentage in point" or "price interest point." Forex traders measure gains and losses in pips, and a single pip on a standard 100,000-unit lot of EUR/USD equals roughly $10.