WickCheck / Trading school / Pip
PipBeginner
The standard unit of price change in forex: 0.0001 on most pairs, 0.01 on yen pairs.
What it means
A move in EUR/USD from 1.0850 to 1.0870 is 20 pips. Many brokers quote a fifth decimal (a pipette), which is a tenth of a pip. For gold and indices people usually talk in points or dollars instead.
How to spot it
- Count the change in the fourth decimal (second for JPY pairs).
Common mistakes
- Mixing pips and pipettes, which makes a 20-pip stop look like 200.
Related terms
Lot sizeHow big a position is. One standard lot in forex is 100,000 units of the base cu…Spread, commission and slippageThe costs paid on every trade: the bid–ask spread, broker commission, and the di…Stop lossThe price where a losing trade is closed to cap the loss at a planned amount.…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.