Pipette

Why brokers quote pipettes

Quoting one decimal beyond the pip allows finer pricing, so spreads such as 0.8 or 1.3 pips can be shown exactly.

Reading a five-digit quote

In a quote such as EUR/USD 1.08537, the fourth decimal (3) is the pip and the fifth (7) is the pipette. For USD/JPY at 150.254, the second decimal (5) is the pip and the third (4) is the pipette. A spread of 1.3 pips is therefore shown as a difference of 13 in the last digit.

Pipettes and points

In MetaTrader, a point is the smallest price step quoted for a symbol. On a standard five-decimal EUR/USD quote that is one pipette, so 10 points equal 1 pip. Stops and targets entered in points are therefore ten times smaller than the same number in pips.

Example

If EUR/USD moves from 1.08500 to 1.08507, it has moved 7 pipettes, or 0.7 pips.