The unit price moves in
A pip is the standard unit of price movement in forex. For most pairs it is the fourth decimal place.
EURUSD 1.16840 → 1.16850 is a move of one pip.
The fifth decimal you see on most platforms is a point (or "pipette") — one tenth of a pip. Brokers quote it for precision in pricing and spreads, not because you should think in it.
The JPY exception
Yen pairs quote to two decimals, so one pip is the second decimal place.
USDJPY 148.20 → 148.21 is one pip.
The reason is historical and practical: one yen is worth far less than one dollar, so a four-decimal quote would be measuring movements too small to matter. The rule to remember:
| Pair type | Pip location | Example |
|---|---|---|
| Most pairs | 4th decimal | EURUSD 1.16840 |
| JPY pairs | 2nd decimal | USDJPY 148.2 |