What is a pip?
A pip — short for "percentage in point" — is the standard unit for measuring how far a price has moved. For most forex pairs, one pip is the fourth decimal place: 0.0001. When EUR/USD moves from 1.1000 to 1.1001, that's one pip. Pips are how traders talk about entry, take-profit and stop-loss distances without arguing about decimal places.
Pips in forex
For most pairs a pip is 0.0001. For pairs quoted in Japanese yen (like USD/JPY) a pip is the second decimal, 0.01, because those prices are much larger. Many brokers also quote one extra decimal — a fractional pip, or "pipette", worth one-tenth of a pip — for tighter pricing.
Pips, points and ticks in other markets
Forex uses pips; other markets use points or ticks for the same idea — the smallest standard increment. Stock and index CFDs usually move in points (often 0.01 or 1.0). Crypto is quoted directly to a price, so what counts as a "point" depends on the coin — a $1 move in Bitcoin is tiny in percentage terms, while a $1 move in a sub-dollar token is huge. Gold (XAU/USD) varies by broker — some count a pip as 0.01, others as 0.10. The label matters less than the actual price distance, which is what your risk is measured in.
What is a pip worth?
A pip's cash value depends on your position size, not the pip itself. On EUR/USD: one standard lot (100,000 units) ≈ $10 per pip, a mini lot (10,000) ≈ $1, and a micro lot (1,000) ≈ $0.10. So a 50-pip move is worth $500 on a standard lot but $5 on a micro lot. This is exactly why position sizing is done in pips: you pick a size so a stop-loss measured in pips costs a fixed share of your account.
Why pips matter for signals
Every EntryPips signal expresses its entry, take-profit and stop-loss as prices, and the distances between them — measured in pips or points — are what set the risk-to-reward and your position size. The name is a nod to the idea: a good entry, measured in pips, is the whole game. See how to read a signal →
Educational content, not financial advice. Trading carries risk of loss.