FX · Core
Pip
A pip is the conventional smallest FX increment — usually 0.0001 for most pairs and 0.01 for JPY pairs.
Definition
Spot is quoted to a pip (and a fraction). Pip value in home currency depends on the pair and the notional. It is a quoting unit, not a risk unit — convert to % or to dollar DV01 of the pair.
Why it matters
Spreads, targets, and retail P&L are spoken in pips. Professionals still convert to dollars.
Case
A 2-pip spread on EURUSD is tiny in percent and still a tax on a high-frequency scalp. The same 2 pips on a 100× retail account is the business model.
How to read it
State pip value for your notional. Then talk in percent or in dollars. Pips without notional are sports commentary.
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