A ‘Pip’ is usually used in forex trading, but it is applicable to almost all instruments.

Pip denotes a move in the instrument, its the same as ‘tick’.

For example if USD INR moves from 61.6250 to 61.6275, we would say the contract moved 1 pip, considering 0.0025 is the minimum possible move in the contract.

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A pip is the smallest allowed movement in a Forex Pair. It’s usually 4-5 digits after the point. i.e. GBPINR = 98.0000 or 98.00000 depending on your Forex broker. Now the pip in this case could be the minimum amount by which the last digit in above cases changes. It could be 0.0001 or 0.0005 or 0.0025 or 0.00001/0.00005. This smallest movement is a ‘pip’.

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