In cryptocurrency trading, “pip” (sometimes people say “pipe”) is a unit used$GOOGL.US to measure a small change in the price of an asset.
For example, if a crypto pair moves:
BTC/USDT: $65,000.00 → $65,001.00
The price increased by $1, which could be described as 1 pip depending on the platform's pip definition.
However, crypto platforms don't use a universal pip size. Unlike traditional forex, where a pip commonly means 0.0001 for many currency pairs, crypto exchanges may define the smallest price increment differently.
Pip vs. tick vs. point
Term Meaning
Pip
A standardized price-movement unit, mainly borrowed from forex
Tick
The smallest permitted price movement on a trading platform
Point
A general term for a price increment
Percentage (%)
Measures the relative size of the price movement
Example with Bitcoin
Suppose you buy BTC at $65,000 and sell at $65,500.
Your price movement is:
$65,500 − $65,000 = $500
If your platform defines 1 pip as $1, that's 500 pips.
But if you're trading futures, forex-style crypto CFDs, or a particular exchange, the platform may define a pip differently. #sol
