Pip definition

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Pip has a particular significance in relation to IG's platform. Here, we define pip in general investing and explain what it means to you when trading with IG Bank.

A pip is a measurement of movement in forex trading, defined as the smallest move that a currency can make.

Usually, a pip is 0.01% of a single unit of currency, or the fourth digit after the decimal point. In EUR/USD, for instance, a move of 1.0001 to 1.0002 would be a single pip move.

This isn't always the case however. Some currencies (such as the yen) delineate a pip as 1% of a single unit of currency. In USD/JPY, a move of 120.01 to 120.02 would be a single-pip move.

With IG Bank

At IG Bank we measure currency moves in pips for CFD trades, but we refer to them as points

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