Definitions for "PIP or Points"
Currencies are quoted to 5 decimal points, and depending on context, PIP is the term used to define the smallest element of an exchange rate, normally one basis point. For example; 0.0001.
The smallest unit of price for any currency, the last decimal.
Most currencies are quoted in five digit figures, irrespective of the position of the decimal point. A PIP is the phrase used to describe the smallest part of an exchange rate. Example: on the £ v US$ rate of £/$ 1.6500 a pip is 0.0001. Accordingly if the rate moves up by 5 pips the resulting rate in the example will be 1.6505. A POINT is generally 100 pips. In the above example if the rate moves up by 100 pips (one point) the resulting rate will be 1.6600.