Pipette

A pipette is a fractional pip — one-tenth of a standard pip — used by many brokers to quote prices with an extra decimal of precision (the fifth decimal place for most pairs, the third for yen pairs). It lets a broker display a spread of, say, 0.8 pips instead of rounding to a whole 1 pip. Pipettes matter most for traders comparing raw ECN spreads, where tenths of a pip add up across high volumes.