Yen pairs: why is the pip different?
On most pairs a pip is the fourth decimal place. On yen pairs it's the second: USD/JPY moving from 150.10 to 150.11 is one pip. The difference comes from the yen's low unit value, and it trips up beginners doing pip-value maths.
Have you been caught by it?
- the pair and the mistake
- how you remember the rule
- how pip value differs on yen pairs in dollar terms
The pip guide covers the yen exception with worked examples.
Background: What is a pip? How to calculate pip value, with examples
A pip is the smallest standard price step in a currency pair. Here is how pips, pipettes and pip values work on EUR/USD, USD/JPY, crosses and gold.
How much is one pip worth on EUR/USD?
On a dollar account, $10 per pip for one standard lot (100,000 units), $1 for a mini lot and $0.10 for a micro lot.
What is a pipette?
A pipette is one tenth of a pip: the fifth decimal place on most pairs, or the third on yen pairs.
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