What is the difference between pips and points/pipettes?
| Feature | Pip | Point/Pipette |
|---|---|---|
| Definition | The smallest standard unit of price movement in forex trading. | A smaller unit, 1/10th of a pip, used for more precise price measurements. |
| Decimal place | - 4th decimal place for most currency pairs. - 2nd decimal place for JPY pairs. |
- 5th decimal place for most currency pairs. - 3rd decimal place for JPY pairs. |
| Value | - For most pairs: 1 pip = 0.0001 - For JPY pairs: 1 pip = 0.01 |
- For most pairs: 1 point = 0.00001 - For JPY pairs: 1 point = 0.001 |
| Example (EUR/USD) | A move from 1.1000 to 1.1001 is a 1 pip change. | A move from 1.10000 to 1.10001 is a 1 point change. |
| Example (USD/JPY) | A move from 110.00 to 110.01 is a 1 pip change. | A move from 110.000 to 110.001 is a 1 point change. |