A pip in forex is an acronym for ‘point in percentage’ and is a basic unit of measurement for currency pairs. In fact, a pip is the smallest amount of change a currency pair is quoted in. In most cases, a pip represents 1/100th of 1 per cent. That means for every 1 pip, a currency pair moves 0.0001. That’s because currency pairs are usually represented by four numbers after a decimal point. This excludes the Japanese Yen, which only has two numbers after a decimal point.