Pip

A pip (short for "percentage in point") is the smallest standard price movement in a currency pair — typically the fourth decimal place (0.0001) for most pairs, and the second decimal place (0.01) for pairs involving the Japanese yen. It's the standard unit traders use to measure price changes, gains, and losses. For example, if EUR/USD moves from 1.0850 to 1.0855, that's a 5-pip move. Many brokers also quote fractional "pipettes" (a tenth of a pip) for extra pricing precision.