What a pip is

A pip is the standard unit of price movement. For most pairs it is the fourth decimal place, 0.0001, so EUR/USD moving from 1.0850 to 1.0851 is a one-pip move. For yen pairs it is the second decimal place, 0.01, and gold is usually quoted with a pip of 0.10.

Measuring stops and targets in pips lets you compare setups across different instruments.