Definition
For any currency pair, a pip is the smallest unit of price fluctuation. It’s 0.01 Yen for pairs with the JPY as the counter currency. It’s 0.0001 of the counter or quotation currency for all other pairs.
For example
For the EURUSD
and most other pairs, movement from 1.4000 to 1.4001 is one pip.
For the USDJPY,
a movement from 80.00 to 80.01 is one pip.
It's cash value is always expressed in terms of the quotation currency, which you then convert to the currency in which your account is denominated using thecurrency pair price, which is the current exchange rate.
