The word PIP in Forex، is the smallest unit of value of the exchange rate, which is a measure of the rate of price change in currency pairs. This term is used among all international market traders. Suppose if the price per dollar is 2.7694 euros and changes to 2.7696، we say that two pips have changed. Often the fourth digit after the decimal is called the PIP.Forex traders generally use pips to show profits or losses.for example, when a trader receives 40 pips in a trade, it means that he has made a profit of 40 pips. The amount of cash earned depends on the value of the PIP.

the monetary value of each PIP is influenced by three factors: - the pair are trading - the amount of the transaction - exchange rate

According to the description above, the PIP criteria measure the price of a pair of currencies is the PIP of a ten-thousandth of the price of the pair can be. Somehow the fourth number after the point say.