Pips, Points and Lots: Understanding Price Movements and Trade Sizes

A ‘pip’ (point in percentage) is the smallest standard increment in which a currency pair can move. For almost all pairs, a pip is the fourth digit after the decimal point. A popular exception is the Japanese yen, where a pip is a change in the second digit after the decimal point.

This is an example of how pair quotes are displayed, and the pip for each pair is highlighted:
EUR/USD = 1.13422
GBP/CAD = 1.71791
USD/JPY = 110.771