As many have mentioned the definition has been given already but I would suggest for help with these sorts of fundamental questions going through something like the BabyPips school as all this jargon and much more is in there and it's free.
If you can't spot the liquidity then you are the liquidity.
Pip is an acronym for 'percentage in point' or 'price interest point.' A pip is the smallest price move that an exchange rate can make based on forex market convention. Most currency pairs are priced out to four decimal places and the pip change is the last (fourth) decimal point. A pip is thus equivalent to 1/100 of 1% or one basis point. For example, the smallest move the USD/CAD currency pair can make is $0.0001 or one basis point. I believe that it's very important to understand all the terms in trading because it clarifies you many aspects in this activity, even the most complicated ones.
The forex pip refers to the movement of price from one point to another. If the price of eurusd moves up to 1.1610 then eurusd has moved three pips upwards, that's how pip works, and don't forget that we have ask and bit price, if the current price of eurusd is 1.1607 then the bid price will be 1. 16010.
Pip measures the amount of change in exchange rate of a currency pair and is calculated using the last decimal point. Knowing the pip value of a currency pair gives a trader a more precise assessment of how many pips of risks a trader is taking.
I see that there are already several explanations with the answer to your question, but I wanted to point out that the Babypips website would probably help you out. They have a lot of content that focuses on beginners. I also was confused about pips at first but the site explains things in a way that is easy to follow.
In forex trading, pip is an acronym that denotes ‘percentage in point’ or ‘price interest point’. It is the smallest price move that an exchange rate makes on the basis of forex market convention. Generally, all the currency pairs are priced out to four decimal places while the pip change is the last decimal point.
Dictiony posted: What is Pip In Forex, I am learner and asking for this question for learning purposes.
I see you already have your answer! In your trading, you should set your SL and TP according to the Pip calculator; don’t set your TP randomly, always try to set this position according to the market chart!
A pip is defined as the small price movement in the quote price of a currency pair. Usually, pip is the fourth number (0.0001) after the decimal point. But there are exceptions for pairs with JPY (0.01) as one of the currencies.
In order to make profitable trades, traders have to catch pips. They are referred to as the minimal changes in the price of a currency pair. For instance, Say EUR/USD was quoted at 1.7581 when you bought this pair. After a while, due to market’s volatility, its value changed to 1.782. So if you look closely at the price, the last digit has increased by 1. That’s what is called a pip. Generally, a pip is the fourth value after the decimal (0.0001). But there are exceptions; all pairs formed with the Japanese Yen follow 0.01.
In forex trading, the pip is the amount by which the currency pair has moved. It refers to the smallest change in the price of a currency pair. It is the minimum amount that the price can move, either up or down.
Pip is the smallest price fluctuation that a currency price can make. On the currency market, a pip is the smallest price movement of one currency versus another. It is usually represented in decimal digits.
The pip is the minimum price movement possible in one transaction. One pip is equal to one tenth of 1%. Usually Forex quotes are in pips, which makes it easy to compare the rate of one currency to another, as well as one currency pair to another.
Consider a trader who purchases Japanese Yen by selling USD/JPY at 150.06. If the trade is closed at 150.09 yen (JPY), the trader loses 3 pips (yen pairs are quoted with 2 decimal places)In other currencies, the pip is the fourth digit after the decimal point.