Pipette

A pipette is one-tenth of a pip, the smallest standard unit of price movement in forex. For most currency pairs, a pip is 0.0001 (or 0.01 for JPY pairs), so a pipette is 0.00001 (or 0.001 for JPY pairs). Brokers often quote prices with an extra decimal place to show pipettes, offering more granular price information than a standard pip quote. This allows for finer distinctions in bid and ask prices.

For retail traders, pipettes signify increased precision in pricing, particularly evident in tighter spreads. A broker quoting 1.5 pips spread effectively means 15 pipettes. While seemingly small, these fractional movements contribute to the overall spread cost and potential slippage. Traders should be aware that their profit/loss calculations are typically still based on full pips, but pipettes reflect the exact execution price.