Pip (พิป)

A Pip is the standard unit traders use to measure a change in a currency price. For most pairs, such as EURUSD, one pip is 0.0001 (the fourth decimal place). For pairs with the Japanese yen, such as USDJPY, one pip is usually 0.01 (the second decimal place).

Counting pips

If EURUSD moves from 1.1000 to 1.1050, it has moved 50 pips. If USDJPY moves from 150.00 to 150.50, that is also 50 pips.

Many platforms show one extra decimal digit. This smaller step is a fraction of a pip (sometimes called a pipette). It is 1/10 of a pip.

Pip value in money

The pip value tells you how much money one pip is worth for your position size. It depends on the Lot size and the pair traded.

For EURUSD, 1 standard Lot is 100,000 units of the base currency:

• 100,000 × 0.0001 = 10 USD per pip
• A 50-pip move on 1 Lot = 50 × 10 = 500 USD
• 0.1 Lot (10,000 units) = 1 USD per pip

The move can be a gain or a loss, depending on your trade direction.

Why it matters

Pips let you compare price moves across pairs and set a Stop Loss distance in clear terms. A common beginner mistake is to look only at the number of pips and ignore the pip value. A 20-pip move can be small with a tiny Lot size, or very costly with a large one. Always check the pip value before you trade.