Pip

A pip, short for percentage in point, is the smallest standardized price movement in forex trading. For most currency pairs, a pip equals 0.0001, which is the fourth decimal place. For pairs that include the Japanese yen, a pip is 0.01, or the second decimal place. Pips are the unit traders use to measure price changes, track profit and loss, and set stop losses and take profits.

How pips work in practice depends on your position size. The pip value scales directly with the number of lots you trade. For a standard lot of 100,000 units on most pairs, one pip is worth roughly $10. A mini lot (10,000 units) makes each pip worth about $1, and a micro lot (1,000 units) reduces it to about $0.10 per pip.

For example, if you have 1 standard lot on EUR/USD at 1.0850 and the price moves to 1.0900, that is a 50 pip move. At roughly $10 per pip, the trade is up $500 before fees. If instead the price drops to 1.0830, that is 20 pips against you, worth about $200 in losses. Understanding pip math is how traders size positions to match their risk tolerance.

In copy trading, pips translate the master account's moves into your account. SteadyFlowFX scales every copied trade based on your balance, so a 30-pip winning trade produces different dollar amounts at different account sizes. Knowing what a pip is worth at your account size is the foundation for reading your daily equity curve realistically and verifying that copied lot sizes match what the strategy intends.