What is Pip and Pipette?

What is Pip?

"Pip" is an acronym for percentage in points. Pip is used as a unit of measure to express the value change in a currency pair.

For example, if the EUR/USD price moves from 1.0535 to 1.0536, that means the value of the increase is 0.0001 (1 pip). If the EUR/USD price moves from 1.0535 to 1.0530, that means the value of the decrease is 0.0005 (5 pip).

What about a Pipette?

A pipette is a point. Every 10 points equals 1 pip. It is also used as a unit of measure for market price changes, but the pipette value is smaller than the pip value.

For example, if the EUR/USD price moves from 1.05355 to 1.05358, that means the value of the increase is 0.00003 (0.3 pip). If the EUR/USD price moves from 1.05355 to 1.05155, that means the value of the decrease is 0.00200 (20 pip).

How to calculate pip value in 2 or 3 decimals?

For any JPY pair, 0.01 equals to 1 pip. For examples, if the GBP/JPY price moves to 180.10 to 180.20, that means the value of the increase is 0.1 (10 pip) and if the GBP/JPY price moves to 180.10 to 179.10, that means the value of the decrease is 1.0 (100 pip).