Defining a Pip Currencies are quoted using 5 significant digits. The last digit, called pip, represents the smallest potential move in an exchange rate, and is very similar to ticks or points in other financial instruments. In the example below, a 10 pip increase in the Ask price would result in a quote of 1.2287. Similarly, a 10 pip decrease in the Ask price would result in a price of 1.2267. Half-pips are a recent development that allows investors to tighter spreads and more competitive pricing guides and transparent. When trading foreign exchange, the value of a pip is dependent on two variables - (more...)