Pip vs Pipette
Look-alike pair
Pip and pipette are both units of price movement, but they differ in magnitude and usage. The single difference that matters: a pip is the standard smallest whole-unit price move for most currency pairs, while a pipette is one-tenth of a pip, used for finer precision. This distinction affects how spreads, profits, and losses are quoted and calculated.
Side by side
| Pip | Pipette | |
|---|---|---|
| Definition | The standard smallest price increment for a currency pair, typically 0.0001 for most pairs and 0.01 for JPY pairs. | One-tenth of a pip, typically 0.00001 for most pairs and 0.001 for JPY pairs. |
| Field mark | Quotes show four decimal places for non-JPY pairs (e.g., 1.2345) or two for JPY pairs (e.g., 123.45). | Quotes show five decimal places for non-JPY pairs (e.g., 1.23456) or three for JPY pairs (e.g., 123.456). |
| Common usage | Used in standard quotes, spread descriptions, and profit/loss calculations for most retail trading. | Used by brokers offering fractional pricing to provide tighter spreads and more precise pricing. |
| Value example | For EUR/USD, a move from 1.2345 to 1.2346 is one pip. | For EUR/USD, a move from 1.2345 to 1.23451 is one pipette. |
| Broker variation | Some brokers quote in pips, others in pipettes; the convention varies by broker and platform. | Not all brokers use pipettes; availability and naming vary by broker and country. |
Which word to use
Use pip when referring to the standard smallest price move in most currency pairs, and use pipette when referring to one-tenth of a pip for finer precision, especially with brokers that quote fractional pips.
Family: XI · Look-alikes · Index A–Z