| A pip (percentage in point) is the standard unit used to measure price movement in various financial instruments, including currency pairs, commodities, and indices. For most currency pairs, a pip represents the fourth decimal place (0.0001), while for instruments like the Japanese yen (JPY) or certain commodities, it may refer to the second decimal place (0.01). The smallest price change for these instruments is typically 1 pip. The value of a pip is calculated by dividing 0.0001 by the price for most instruments, or 0.01 for those quoted to two decimal places, such as JPY pairs or certain commodities. |