A pip means “percentage in points”. A pip is the smallest price change that a market can make. Pip size changes across most markets. For instance, most currencies are priced to four decimal places, thereby meaning that GBPUSD moving from 1.2545 to 1.2546 is a movement of one pip. However, one pip in the USDJPY pair is equivalent to a move in price of 0.01, as that particular pair is only priced to two decimal places.
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