The standard unit to measure price movement in forex. For most currency pairs, 1 pip = 0.0001 of the exchange rate (for JPY pairs, 1 pip = 0.01). It’s essentially the fourth decimal place for non-JPY pairs. For example, if EUR/USD moves from 1.1050 to 1.1055, that’s a 5-pip increase. Pips are the basis for calculating profit and loss: if your EUR/USD buy trade of 1 lot goes up 10 pips, you make $100 (because $10 per pip for 1 lot). Many brokers use 5-decimal pricing, where the fifth decimal is called a pipette (or fractional pip) – e.g., 1.10503 vs 1.10508 is 0.5 pip difference. In simpler terms, “a pip is the smallest typical change in a currency price” for quoting purposes (though with modern precision a pipette is the smallest fractional move). Understanding pips is crucial for setting your EA’s stop losses, take profits, and interpreting strategy performance (e.g., “20 pips gain” or calculating risk per trade). Your robot’s configuration may ask for values in pips, so confirm whether it expects the 4-digit or 5-digit convention (most handle this automatically now).

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