In the forex market, a pip (percentage in point) is a standard unit of measurement used to denote changes in currency pairs' exchange rates. It represents the smallest incremental movement in the price of a currency pair.

Typically, most currency pairs are quoted with four decimal places. For example, if the EUR/USD currency pair moves from 1.2000 to 1.2001, it means there has been a one pip movement. In this case, the change is 0.0001 in the exchange rate.