A point in price – or pip for short – is a measure of the change in the exchange rate of a currency pair. It is the smallest unit of measurement we use when trading currencies.

Most currency pairs are measured to five decimal places. For pairs such as EURUSD, GBPUSD a pip corresponds to the fourth decimal digit.

Yen-based currency pairs like USDJPY are the exception due to the fact that they are measured to three decimal places and the pip corresponds to the second decimal digit (USDJPY 109.684). 

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