Pip
Definition · Level 6 · Desk language
Keep reading with Tradecraft
Without an account, you can read three definitions every 30 days. Tradecraft explains all 738 terms and strategies, with the lessons that teach them, flashcards that come back before you forget, quizzes and a payoff lab.
The standard FX price increment: 0.0001 (4th decimal) for most pairs, 0.01 (2nd decimal) for yen pairs. Worth $10 on a 100,000-unit (standard-lot) EUR/USD position.
Example
EUR/USD 1.0850 → 1.0875 = 25 of them.
Rules and market figures change: check the current ones before relying on this.
Where Tradecraft teaches it
Level 6 · Desk language, in the lesson “Reading a quote”: Bid first, offer second, sizes the same way round — plus the units and shortcuts dealers use.
Related terms
- “20 by 50”Size quote: first number = quantity on the bid, second = quantity on the offer (contracts, round lots or millions, depending on the product).
- “20 up”The same size shown on both sides of the quote: 20 on the bid and 20 on the offer.
- Big figure / handleThe leading digits of a price that rarely change, so dealers skip them and quote only the last digits (1.08 in EUR/USD 1.0842; 5,400 in S&P futures…
- ChoiceA zero-width market — bid and offer at the same price — so the counterparty may either buy or sell there.
- Firm (quote)A price the dealer is committed to deal on, for the size shown, if you say “yours” or “mine” before it is withdrawn (often within seconds) — the…
- MidThe average of the best bid and best offer — the usual fair-value reference for arrival prices, spread math and many OTC marks.