Percentage in Point — the smallest standard price movement in forex. For most pairs, 1 pip = 0.0001. For JPY pairs, 1 pip = 0.01.
A pip's dollar value depends on the currency pair and lot size. For EUR/USD with 1 standard lot, 1 pip = $10. For USD/JPY, 1 pip ≈ $6.50 per standard lot (varies with exchange rate). Understanding pip values is essential for accurate position sizing and risk management. Many brokers now quote prices to an extra decimal place (called a pipette or point), where 10 points = 1 pip.