Pip
Volume Profile Analysis glossary · Profile Anatomy & Volume Nodes
Definition
The smallest standard price increment in a currency pair. For most pairs, the fourth decimal place (0.0001); for JPY pairs, the second decimal place (0.01).
Pip in plain English
A pip is the tiniest normal "tick" a currency price moves — think of it like the last penny on a price tag, the smallest step that still counts. For most pairs it's the fourth number after the decimal point (0.0001), so if the euro moves from 1.1050 to 1.1051, that's one pip. For pairs that include the Japanese yen, the smallest step is the second decimal (0.01) instead, just because yen prices are quoted with fewer decimals. Pips matter because traders measure their profit, loss, and risk in pips — it's the shared ruler everyone in the market uses.
Learn these first
Related Volume Profile Analysis terms
Volume Profile Analysis practice questions · Volume Profile Analysis flashcards · Volume Profile Analysis study guide