Examples of pips
Let’s take a look at the EUR/USD currency pair. If the market moves from 1.1600 to 1.1601, that 0.0001 increase would be a single pip move.
If you had entered a long position on EUR/USD, and the market moved from 1.1600 to 1.1650, you would have gained 50 pips and profited from the increase. But if the market moved against you, falling from 1.1600 to 1.1550, this decline of 50 pips would mean that your position made a loss.
If we look at the USD/JPY currency pair, a move of 120.01 to 120.02 would be a single-pip move.
You decided to enter a long position on the pair, and the price increased from 120.00 to 120.08. This means that the market has moved by eight pips, and your position would be showing a profit.