A pip is a measurement of movement in forex and CFD trading, used to define the change in value between two currencies. The literal meaning of pip is ‘point in percentage’, and it is the smallest standardised move that a currency quote can change by. Traders often use the term "pips" to refer to the spread between the bid and ask prices of the currency pair and to indicate how much gain or loss can be realized from a trade.

The number of decimal places you see quoted for an instrument (such as BTCUSD) on our trading platform will determine the movement in pips.

On a 5 decimal place trading pair a pip is 0.00010

On a 3 decimal place trading pair a pip is 0.010

On a 2 decimal place trading pair a pip is 0.10

Trader tip: A pip is always the second last digit. A point is always the last digit.

Examples of pips

Let’s take a look at the BTCUSD pair. If you go long (Buy) 1 lot of BTCUSD at USD36,100.00 and it subsequently moves to USD36,101.00, that USD1.00 move higher is a gain of 10 pips which is 100 points.

If we look at the ADAUSD pair, a move of 0.08980 to 0.08990 would be a single-pip move.

You decided to enter a long position on the pair, and the price increased from 0.08980 to 0.09050. This means that the market has moved by seven pips, and your position would be showing a profit.