In forex trading, a pip is the smallest unit of measurement used to express the change in the value of a currency pair. A pip stands for “percentage in point” or “price interest point”, and it represents the fourth decimal place in most currency pairs, except for some currency pairs that have a Japanese yen as the quote currency, where a pip is represented by the second decimal place.
For example, if the EUR/USD currency pair moves from 1.1800 to 1.1810, this represents a movement of 10 pips. Similarly, if the USD/JPY currency pair moves from 110.50 to 110.60, this also represents a movement of 10 pips.
The value of a pip can vary depending on the size of the position and the currency pair being traded, but in general, a one-pip movement in a standard lot (100,000 units) of a currency pair will result in a profit or loss of 10 units of the quote currency.