“Percentage in point” or “price interest point” is what Pip stands for. According to forex market tradition, a pip is the shortest value movement in which a currency value may generate. The pip increase will be the last (fourth) decimal point throughout most forex pairings valued at 4 decimal places. As a result, a pip equals 1/100 of a percent or one percentage point. The lowest possible shift in the USD/CAD exchange rate, for instance, is $0.0001, or one basis point.