A pip is the smallest unit of price for any currency. It is an abbreviation of percentage in point. Most currencies are expressed to the fourth decimal point, and the pip is the smallest change in the fourth decimal place, or 0.0001. This means that for USD, a pip is 1/100th of a cent. The Japanese Yen is the only currency expressed to the second decimal place, making its pip value 0.01. Join FXdirects learning academy to learn more about pip.