Pips

This is an acronym for Price Interest Point. Pips represent the smallest change possible (one hundredth of one percent) in the exchange rate between any pair of currencies. For example: Assume the EUR/USD rate is 1.4011 (i.e. 1 Euro is equal to $1.4011). If this rate would go up to 1.4019 - the change would be 8 pips.