A pip (Percentage in Point) is the smallest standardized price move in a currency pair — the 4th decimal place for most majors (0.0001) and the 2nd decimal for JPY pairs (0.01). It's the unit traders use to measure price changes, calculate spreads, and quote stop-loss/take-profit distances.

A pipette is one-tenth of a pip — the 5th decimal place on most pairs (3rd decimal on JPY pairs). It exists because modern brokers quote with extra precision: 10 pipettes = 1 pip. When a broker says the spread is 1.2 pips, that's 12 pipettes. Pipettes don't change pip-value math; they just give finer pricing.

Japanese Yen has a smaller per-unit value (~150 JPY = $1), so meaningful price moves happen at the 2nd decimal rather than the 4th. If JPY pairs used the 4th decimal like other majors, a 'pip' would be a thousandth of a cent — too granular to be useful. The 2nd-decimal convention keeps pip moves at meaningful magnitudes (~$0.66 per pip per std lot).

Value per Pip = (One Pip ÷ Current Exchange Rate) × Lot Size, in the base currency. Then convert to your account currency using the cross rate. For EUR/USD with a USD account at lot size 100,000: pip value = (0.0001 ÷ 1.0850) × 100,000 ≈ $9.22 in EUR, then × 1.0850 = $10 in USD.

In MetaTrader (MT4/MT5) terminology, a 'point' equals a pipette — the 5th decimal place. So 10 points = 1 pip in MT terminology. Outside MT environments, 'point' is sometimes used as a synonym for 'pip' — context matters. When in doubt, ask whether your broker quotes in 4-decimal or 5-decimal precision.

The PIP Value Calculator focuses on giving you the dollar value per pip for sizing/risk decisions. This Forex Pip Calculator emphasizes the technical mechanics — pipettes, JPY rules, points-vs-pips terminology — while still showing you the value. Use whichever framing matches your need.