Pip definition

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

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.

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

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

Visit our forex section

Find out more about forex trading with IG.

Contact us

24 hours a day from 10am Saturday to Friday night at midnight.

010 344 0053

You can also email helpdesk.za@ig.com

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.