What is a pip?

"Pip" is an acronym for percentage in point or price interest point. A pip is the smallest whole unit price move that an exchange rate can make, based on forex market convention.

Most currency pairs are priced out to four decimal places and a single pip is in the last (fourth) decimal place. A pip is thus equivalent to 1/100 of 1% or one basis point.

For example, the smallest whole unit move the USD/CAD currency pair can make is $0.0001 or one basis point.

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