Is a pip the base metric in Forex trading? What is a pip?
A pip is the smallest indivisible unit in the Forex market. You will often hear or read about a 20-pip move or a 50-pip move. Most Forex pairs are expressed with four digits after the decimal point. But those with Japanese Yen (JPY) as the second currency in the pair are expressed with only two digits after the decimal point. So, for example, a pip of USD/JPY is .01, while for EUR/USD, the pip is .0001