A PIP is an acronym for percentage in point.
This percentage in point represents the smallest value of measurement for currencies on the forex market.
Broker | Our Rating | Description | Minimum Deposit | Regulation | Visit | |
---|---|---|---|---|---|---|
![]() |
| $100 | Central Bank of | Visit Broker AVATrade ReviewT1 ROTW | Risk Warning: Your capital may be at risk | |
![]() |
| $1 | IFSC | Visit Broker FBS Markets. ReviewROTW | Risk Warning: Your capital may be at risk | |
![]() |
| $5 | CySEC, IFSC, ASIC | Visit Broker XM Group ReviewROTW | Risk Warning: Your capital may be at risk | |
![]() |
| $10 | CySec | Visit Broker IQOption Review | Risk Warning: Your capital may be at risk | |
![]() |
| $100 | ASIC, CySEC | Visit Broker Easy Markets ReviewT1 ROTW | Risk Warning: Your capital may be at risk | |
![]() |
| €100 | FCA, CySec, ASIC : | Visit Broker Plus500 ReviewT1 ROTW | Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% 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. | |
![]() |
| $5 | FSC | Visit Broker HF Markets Ltd. (HotForex) ReviewROTW | Risk Warning: Your capital may be at risk | |
![]() |
| $100 | CySec | Visit Broker Markets.com ReviewT1 ROTW | Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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. | |
![]() |
| $100 | CySec | Visit Broker FXPrimus ReviewROTW | Risk Warning: Your capital may be at risk | |
![]() |
| $1 | RAFMM, The Federal | Visit Broker InstaForex ReviewROTW | Risk Warning: Your capital may be at risk | |
![]() | 10 | Visit Broker OLYMP TRADE Review | Risk Warning: Your capital may be at risk |
Unlike dollars and cents which are calculated up to two decimal places, the currencies on the forex market are calculated up to the fourth decimal point.
The smallest move that a PIP can have is .0001, which represents 1/100th or commonly referred to as 1 basis point.
The one exception to the fourth decimal point is the Japanese Yen, which is only calculated up to two decimal places.
PIPs are calculated in terms of currency pairs. Unlike stocks or futures which trade solely based on their own evaluation, the forex market compares the value of two currencies to arrive at a Bid and an Ask price, which is expressed in terms of PIPs.
So, for example, if the USD/CHF is worth 1.15351, then that means that $1 US Dollar is worth 1.1531 Swiss Francs.
But the price is different for the bid and for the asking. So, if the price of the EUR/USD forex pair moved from 1.33800 to 1.33920, it is said to have climbed by 12 ‘pips’ (92-80=12).
To show the BID/ASK prices, another example would be EUR/USD dealing at 1.33800/1.33808 (in this case the spread is 0.8 pips or 0.00008). The exceptions to this are the JPY pairs which are quoted to just 2 decimal places.
A USD/JPY price of 97.41/97.44 displays a 3 pip 'spread'.
Your capital is at risk. Trading in Forex and Contracts for Difference (CFDs) is highly speculative and involves a significant risk of loss. The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. This website is provided for informational purposes only and in no way constitutes financial advice. A featured listing does not constitute a recommendation or endorsement.
Forex Trading.Company was established to provide global traders a deep and insightful source of information on forex trading strategies and indicators. With guides for everyone from beginner traders in Bangladesh to advanced strategists in Hong Kong we want the world trading community to benefit from our in-depth broker comparison + reviews, features, and commentary. We list the world's top regulated and authorised brokers suitable for a global audience.
We aim to think global, act local with our website, so that whether you're in Asia, Europe or Africa you can gain from our content on the world's biggest market.