Pip
BasicsThe pip versus its value
A pip measures how far price moved, but pip value measures what that move is worth to you, and the two are easy to confuse. On a standard lot of EURUSD a pip is worth about ten dollars, on a mini lot one dollar, and on a micro lot ten cents. The move on the chart is the same, but the money changes entirely with your size.
Why yen pairs are different
Yen pairs quote to two decimals instead of four, so a pip is 0.01 rather than 0.0001, and its value moves with the exchange rate rather than sitting at a fixed figure. That is why a pip on USDJPY is not a clean ten dollars the way EURUSD is. A pip calculator handles the conversion so you are not doing it by hand mid-trade.
Know the term. Now hold the line.
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