# What’s a pip?

#### davtrent55

##### Recruit
I wish they'd make it more simple and have all pairs with the same number of decimal places....

#### bigdolly

##### 2nd Lieutenant
Please explain to me what a pip is?
Divide exchange rate by 10000 (or by 100 in XXX/JPY pairs) and you will get the pip. Basically it is a unit of measurement of exchange rate movement.

#### Eliza_King

##### Recruit
Awesome, thanks! Why’s it different for JPY?

##### Corporal
I wish they'd make it more simple and have all pairs with the same number of decimal places....
This would make life simpler lol

#### Dora_WalletInvestor

##### Corporal
This would make life simpler lol
Yes, definitely. But I don't dare complain, I'm glad that at least it's uniform in the majority of currencies

#### ele020

##### Sergeant
Please explain to me what a pip is?
A pip is the price movement generally for all the currency pairs. The pip price movement is checked from the 4th decimal place on an instrument. generally 1 pip movement in a currency pairs is equal to 10 USD. Example if the price of EURUSD moves from 1.22020 to 1.22030, there is an increase in 1 pip which is equal to 10 USD in terms of pip value. The smallest price fluctuation in currency pairs is called as pipette which is at the 5th decimal place.

#### Eliza_King

##### Recruit
Seems like it would be an obvious fix, must be a reason why not

#### Eryk Martin

##### Recruit
Pip means percentage in point, it is the smallest unit for the price change. One pip equals to \$10.. If you sell EURUSD at 1.2021 (open) and 1.2020 (close) then it means you made a profit of 1 pip.
Some brokers also provide price quotes in pippets which is 1/10th of a pip, here the price will be quoted upto the 5th decimal place.

##### Corporal
Yes, definitely. But I don't dare complain, I'm glad that at least it's uniform in the majority of currencies
Yes, once you have traded them enough it does stick evntually

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