A pip is the smallest unit of price change in currency rates (symbols) to each other. In the forex market, the rates of currency pairs are measured compared to each other, and in this process one currency is considered as the base currency and the other currency is considered as the quoted currency, in this process, usually the changes in the exchange rates are displayed up to four decimal places. The fourth digit after the decimal point is considered a pip. This process is not true for all currencies, and the Japanese yen is one of the exceptions, which is displayed as two digits after the decimal point. Pipette, which is a smaller unit than a pipe, is considered as the fifth digit after the decimal point.
The pip is considered as a factor to check the price change and the traders also report the amount of changes in their trades in terms of pip, which means how much profit or loss in each transaction and at what value was created for them.
For example, if the price of the euro-dollar currency pair is equal to 1.06539, the fifth digit after the decimal indicates the amount of pips and the fourth digit indicates pips.
If this currency pair increase in price by 1.4 pips, the price of the euro-dollar currency pair will be equal to 1.06554.
To use this calculator, you should specify the type of reference currency and after that enter the trading volume in (Lot) . The ITB calculator will easily inform you of the pip rate using the standard lot of each instrument or currency pair.