What does pip stand for?

Pip stands for "percentage in point" or "price interest point." It represents the smallest standardized unit of price movement in forex trading.

How much is 1 pip worth in dollars?

For EUR/USD with a standard lot (100,000 units), 1 pip is worth approximately $10. For a mini lot, it's $1, and for a micro lot, it's $0.10.

Why are JPY pairs quoted differently?

The Japanese Yen has a much lower relative value compared to other major currencies. To keep pip values meaningful, JPY pairs use the second decimal place (0.01) instead of the fourth.

How many pips should I target per trade?

This depends on your trading strategy. Scalpers might target 5-15 pips, day traders 20-50 pips, and swing traders 100+ pips per trade. Always maintain a favorable risk-to-reward ratio.

How do I find pip value on my trading platform?

Most platforms display pip value in the trade ticket or position window. You can also use online pip calculators like the one on BabyPips.

Forex Basics

Forex Pips Explained: Complete Guide

Learn what pips are, how to calculate pip value, and understand the relationship between pips and lot sizes. Essential knowledge for forex trading.

Written ByEmily WatsonCrypto & Fintech Editor

Fact Checked ByDavid OkonjoChief Market Strategist

Last UpdatedOct 20, 2026

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Emily Watson

Cryptocurrency • Fintech • Blockchain

About the Author

Emily is a blockchain technology expert and fintech journalist. She bridges the gap between traditional finance and emerging technologies, reviewing crypto CFD offerings and evaluating broker innovation in the digital asset space.

Crypto & Fintech Editor — Everything you find on BrokerAnalysis is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback.

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