The word “Pip” has many meanings. For the majority of currency pairs, a pip corresponds the rate movement of one unit of the 4th decimal digit in the currency pair. Is this always true? Of course not. There are some exceptions such as the Japanese Yen pairs, different shares and other CFD instruments, where a pip corresponds to the movement of one unit of the 2nd digit in a currency pair’s rate. There are also instruments for which a pip corresponds to the movement of a single unit or hundreds. It’s worth reading up on how price changes for your chosen instrument are measured in Pips.