🔍 What is a Pip?

A Pip (Price Interest Point) is the smallest price movement in forex. For most currency pairs, it’s equal to 0.0001. In JPY pairs, one pip is 0.01.

💰 How is Pip Value Calculated?

Example for a standard lot (100,000 units):

• EUR/USD: 1 pip = $10
• USD/JPY: 1 pip = approx. ¥1000 or $9.50

For 0.1 lot (mini), pip = $1; for 0.01 lot (micro), pip = $0.10.

📊 Why is Pip Important?

• Helps calculate potential profits/losses
• Determines your stop loss and take profit levels
• Used in risk management & strategy planning

🔢 Pip vs Points vs Ticks

Pip: Standard movement (0.0001 or 0.01)

Point: 1/10 of a pip (used in 5-digit brokers)

Tick: Every smallest movement (can be less than a point)

📌 Example Table: Pip Movement

🎓 Final Thoughts

Pips are the foundation of every trade. Understanding how they work helps you improve accuracy, plan better risk management, and grow consistently in the forex market.