In forex trading, a “pip” stands for “percentage in point” or sometimes “price interest point”. It refers to the smallest unit of measurement in the value of a currency pair. A pip is usually equivalent to 1/100th of 1% or 0.0001 in decimal form. The exception is for currency pairs that include the Japanese yen, where a pip is usually equivalent to 1/100th of 1 yen or 0.01 in decimal form. The value of a pip depends on the currency pair being traded, as well as the size of the position being traded.