Pip

What is a pip?

A pip is the smallest price unit of a commodity or currency.
(Source: CFTC)

Pip is an acronym for the following terms, which all have the same meaning:

• Price Interest Point
• Percentage in Point
• Percentage Increment Point

One pip is the smallest measure of Price move used in forex trading. For instance, if the currency pair EUR/USD is currently trading at 1.3000 and then the exchange rate changes to 1.3010, the pair did a 10 pips (smallest units) move. The pip is the smallest measure regardless of the fractional representation of the currency exchange rate. Thus, 1.3000 to 1.3010 is the same move in pips terms as 110.00 to 110.10. (Source: Wikipedia)