Pip

A pip is the smallest standard increment by which most currency pairs move — the fourth decimal place of the price for the majority of pairs, and the second decimal place for pairs quoted in Japanese yen.

Traders measure every gain, loss, spread and stop distance in pips because it provides a neutral unit independent of position size. Once you know your pip value, any move in pips converts directly into money. A pipette is one tenth of a pip, shown as an extra digit by many brokers.