Forex glossary
Pipette (fractional pip)
Documentation context: The OANDA document covers a legacy platform and the extra-digit convention; the current instrument specification sets the permitted price increment.
A pipette is one tenth of a pip. In a typical EUR/USD quote it is 0.00001; for JPY pairs it is usually 0.001. Do not automatically equate it with the instrument’s minimum tick: check the symbol specification.
Illustrative example
How does it work in practice?
Suppose EUR/USD rises from 1.08450 to 1.08451: that is one pipette, or 0.1 pip. Moving from 1.08450 to 1.08460 is ten pipettes, which equals one pip.
Pips and pipettes in an EUR/USD quote
Pips, pipettes and platform points
Assumed EUR/USD specification: pip 0.0001; pipette 0.00001; point 0.00001; tick 0.00001 USD per EUR.
On a narrow screen, the table can be scrolled horizontally.
| Term | What it describes | Shared example |
|---|---|---|
| Pip | A conventional rate-movement unit, ten pipettes in this model. | 1.10000 → 1.10010: one pip. |
| Pipette (fractional pip) | One tenth of a pip, not a separate cash amount. | 1.10000 → 1.10001: one pipette, or 0.1 pip. |
| Platform point | The platform display unit; its value comes from the specification. | 1.10000 → 1.10005: five points, or 0.5 pip in this model. |
Takeaway: Point, pipette and tick are equal only under these assumptions. Calculate the price unit and its cash value separately.
Change an assumption, see the result
What changes if…?
Compare pips and pipettes for the same EUR/USD change. Change the price move: one pipette in this model is one tenth of a pip.
EUR/USD model: pip = 0.0001; pipette = 0.00001. Initially one lot is 100,000 EUR. Units per lot, point and tick can be changed separately as exercise assumptions. A fractional tick count means the move is not a multiple of the stated tick. Check actual specifications with the provider. Pip value: USD.
Check your understanding
Convert pipettes into pips without confusing the factor of ten.
Show the answer and explanation
7 pipettes, or 0.7 pip.
The difference is 0.00007. Divide by 0.00001 to get seven pipettes; ten pipettes make one pip.
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Related terms
Sources and documentation
- OANDA Desktop Trading: user preferences settings
The legacy OANDA platform documentation describes pipettes as an additional decimal digit beyond a pip in the illustrated price convention.
Document read: - MQL5 Reference: Symbol Properties
Symbol properties distinguish point from tick size and specify contract size, volume steps, and swap calculation units and multipliers.
Document read: - OANDA: What is a pip in trading?
The document explains the 0.0001 pip convention for typical FX pairs, 0.01 for JPY pairs, and a pipette as one tenth of a pip.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.