What is PIP in Forex?

Hi, thank you for asking!

 Pip, or short “Point in Percentage” represents the change in currency pair in Forex exchange. Pip is the smallest amount by which a currency can change. It is usually 1/100th of 1%. The importance of a pip is to understand the effect of its change in a single currency pair. For example in the EUR/USD pair is pip changes in favor of USD, you can buy more Euros for fewer dollars.