Pip

A pip (percentage in point) is the smallest standard unit of price movement in a currency pair. For most pairs, one pip equals 0.0001 (the fourth decimal place). For JPY pairs, one pip equals 0.01 (the second decimal place). Pips are the universal measurement unit for forex profits, losses, and spreads.

How Pips Are Used in Trading

Pip value depends on the currency pair and lot size. For a standard lot (100,000 units) of EUR/USD, one pip equals approximately $10. For a mini lot (10,000 units), one pip equals $1. Understanding pip value is essential for calculating risk-per-trade and setting stop-loss distances.

Spreads are measured in pips. A 1.5-pip spread means you start every trade 1.5 pips in the red. For a scalper targeting 5 pips of profit, this represents 30% of the target; for a swing trader targeting 100 pips, it is negligible at 1.5%. This is why spreads matter more for short-term strategies.

ATR expressed in pips provides a volatility benchmark. If EUR/USD has an ATR of 80 pips on the daily timeframe, you know the average daily range and can size stop-losses accordingly. A stop-loss of 1.5x ATR would be 120 pips.

Access via API

Get real-time spread data in pips for accurate cost calculations.