An abbreviation for ‘Percentage In Point,’ which refers to the smallest value of measurement for currencies on the forex market. It’s often the last decimal place when you look at the price of a typical forex quote. For most currencies around the world, a pip is 0.0001. There are some exceptions, though. Japanese Yen (JPY), for example, has just two decimal places, so currency pair with JPY as the quote currency would have a pip equal to 0.01.