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Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 126 (from laksa104)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa126.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.forex.in.rs/pips-vs-bps/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.forex.in.rs/pips-vs-bps/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.forex.in.rs\/pips-vs-bps\/","crawl_time":1774713749,"first_indexed_time":1679920590,"http_code":200,"src_unparsed":"rs,in,forex!www,\/pips-vs-bps\/ s443","src_root_hash":"10314754273362327126","history_drop_reason":null,"meta_title":"What is the Difference Between a Basis Point and Pip? – Pips vs. Bps – Forex Trading Education & Analysis","meta_descriptions":["Pips, also known as price interest points, are one of the most fundamental terms in forex trading. Most forex traders have to deal with pips…"],"attrs_boilerpipe_text":"Pips, also known as price interest points, are one of the most fundamental terms in forex trading. Most forex traders have to deal with pips daily. A pip is a measurement unit representing the smallest change in a currency pair’s value. It is the fourth decimal place in a currency pair’s price. For instance, if the EUR\/USD pair moves from 1.1234 to 1.1235, that represents a one-pip movement.\nPips help traders determine the profit or loss that they have made on a trade. A pip’s value depends on the size of the lot traded, which is why some traders prefer to use a pip value calculator. Understanding pips is crucial in forex trading as it enables traders to analyze the market and determine when to enter or exit a trade. Additionally, traders can use pips to measure risk and reward ratios, which helps to minimize losses and optimize profits. As such, for anyone looking to be a successful forex trader, understanding the concept of pips is vital.\nHowever, we can see another expression, the basis point in terminology.\nWhen it comes to trading and finance, it is essential to understand the language and the different terminologies used to help you make informed decisions. For example, basis points and pip are commonly used in the financial industry.\nA basis point and a pip are measurement units used to express the movement in the value of a financial instrument, currency exchange rate, or interest rate. Understanding the difference between these terms can be crucial for traders, investors, and anyone involved in finance.\nWhat is the Difference Between a Basis Point and a Pip?\nIn forex CFD trading, basis points and pips are equal values and represent percentage changes in the exchange rate.  A basis point or pips are units of measurement equivalent to 1\/100th of 1%, which means one basis point or pips equals 0.01%. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement.\nWe should use the bps (base point) expression when discussing interest rates, bond yields, and other financial metrics. On the other side, pip expression is characteristic of forex trading and CFD trading, and we need to use it when we describe currency pairs’ price changes.\nWhat is a Basis Point?\nA basis point is a unit of measurement equivalent to 1\/100th of 1%, which means one basis point equals 0.01%. It is a standardized way of measuring the changes in interest rates, bond yields, and other financial instruments. A basis point is widely used in the financial industry to simplify calculations and express tiny percentage changes.\nFor example, if the interest rate moves from 2.50% to 2.60%, it has moved ten basis points or 0.10%. The term basis point is widely used to express the spread between different rates or the difference between bond yields.\nWhat is a Pip?\nA pip stands for “percentage in point,” a standardized measure of the movement in the exchange rates of currencies. As mentioned, one pip is the equivalent of 1\/100th of 1% or one basis point. The slightest price movement is possible in a currency pair, representing the fourth decimal place for EURUSD or GBPUSD  in the exchange rate.\nFor instance, if the EUR\/USD pair moves from 1.2000 to 1.2010, it has moved ten pips. A pip is widely used in Forex trading to quantify the profit or loss of a trade. To learn more, visit our article on\nhow to calculate pips.\nDifference Between a Basis Point and Pip\nBasis Points (bps):\nEqual to one-hundredth of one percentage point or 0.01%\nUsed to measure changes in interest rates, bond yields, and other financial metrics\nRepresents small percentage changes\nPips:\nIt stands for “percentage in point.”\nUsed in currency trading to measure the slightest price change in a currency pair\nMost currency pairs have one pip as the fourth decimal place\nSome currency pairs may have different pip values (e.g., Japanese yen)\nRepresents the smallest price change in a currency pair\nBoth basis points (bps) and pips are units of measurement used in finance and trading to denote changes in financial instruments’ value, such as currencies or bonds. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement.\nA basis point (bps) equals one-hundredth of one percentage point or 0.01%. For example, a change in interest rates from 3.00% to 3.25% represents an increase of 25 bps. Basis points are commonly used to measure changes in interest rates, bond yields, and other financial metrics where small percentage changes are significant.\nOn the other hand, a pip stands for “percentage in point” and is a unit of measurement used in currency trading to measure the smallest price change in a currency pair. For most currency pairs, one pip represents the fourth decimal place, such as the change from 1.2000 to 1.2001. However, some currency pairs may have different pip values, such as the Japanese yen, which has a pip value of 0.01 due to its lower exchange rate than other major currencies.\nWhile both the pip and the basis point represent a percentage change, they are used to express different things. For example, a basis point measures the percentage change between two interest rates or bond yields, while a pip measures the percentage change in the exchange rate of two currencies.\nAnother difference is in the way these two units are expressed. For example, a basis point is expressed in decimal points, while pips are expressed in fractional terms, typically including two decimal places.\nFurthermore, while a pip represents a slight price movement in the currency exchange rate, a basis point can mean a more significant move, typically used when dealing with expressed interest rates. For instance, a change in interest rates of 0.25% would represent 25 basis points. However, the equivalent in pips would depend on the currency pair being considered, as different currency pairs have varying pip values.\nConclusion\nTo sum up, the difference between a basis point and a pip lies in what they measure and how they are expressed. A basis point calculates the percentage change between two interest rates or bond yields. At the same time, a pip measures the percentage change in the exchange rate of two currencies addition; a basis point is expressed in decimal points, while a pip is expressed in fractional terms. Proper knowledge and understanding of these terms can help you make informed decisions when dealing with financial instruments and currency pairs as a trader or investor.\nAbout\nLatest Posts\nTrader\nat\nLeanta Capital\nIgor has been a trader since 2007. Currently, Igor works for several prop trading companies.\nHe is an expert in financial niche, long-term trading, and weekly technical levels.\nThe primary field of Igor's research is the application of machine learning in algorithmic trading.\nEducation: Computer Engineering and Ph.D. in machine learning.\nIgor regularly publishes trading-related videos on the\nFxigor Youtube channel\n.\nTo contact Igor write on:\nigor@forex.in.rs","attrs_markdown":"[Skip to content](https:\/\/www.forex.in.rs\/pips-vs-bps\/#content)\n\nMENU\n\n[![forex.in.rs logo](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/07\/forex-logo-full-300x183.jpg)](https:\/\/www.forex.in.rs\/)\n\n[Search](https:\/\/www.forex.in.rs\/pips-vs-bps\/#open)\n\n- [Home](https:\/\/www.forex.in.rs\/)\n- [Best Forex Brokers](https:\/\/www.forex.in.rs\/the-best-forex-brokers-ratings\/)\n- [Forex Prop Funding](https:\/\/www.forex.in.rs\/all-forex-prop-companies\/)\n- [Learn Trading](https:\/\/www.forex.in.rs\/education-articles-list\/)\n- [Rates](https:\/\/www.forex.in.rs\/rates\/)\n- [Affiliate](https:\/\/www.forex.in.rs\/forex-affiliate-program-ranking-list\/)\n- [About](https:\/\/www.forex.in.rs\/about-us\/)\n- [Contact](https:\/\/www.forex.in.rs\/contact-us\/)\n\n# What is the Difference Between a Basis Point and Pip? – Pips vs. Bps\nWritten by [Fxigor](https:\/\/www.forex.in.rs\/author\/orfejs\/)\n\nin [FAQ](https:\/\/www.forex.in.rs\/category\/faq\/)\n\nTable of Contents\n\nToggle\n\n- [What is the Difference Between a Basis Point and a Pip?](https:\/\/www.forex.in.rs\/pips-vs-bps\/#What_is_the_Difference_Between_a_Basis_Point_and_a_Pip)\n- [What is a Basis Point?](https:\/\/www.forex.in.rs\/pips-vs-bps\/#What_is_a_Basis_Point)\n- [What is a Pip?](https:\/\/www.forex.in.rs\/pips-vs-bps\/#What_is_a_Pip)\n- [Difference Between a Basis Point and Pip](https:\/\/www.forex.in.rs\/pips-vs-bps\/#Difference_Between_a_Basis_Point_and_Pip)\n- [Conclusion](https:\/\/www.forex.in.rs\/pips-vs-bps\/#Conclusion)\n\nPips, also known as price interest points, are one of the most fundamental terms in forex trading. Most forex traders have to deal with pips daily. A pip is a measurement unit representing the smallest change in a currency pair’s value. It is the fourth decimal place in a currency pair’s price. For instance, if the EUR\/USD pair moves from 1.1234 to 1.1235, that represents a one-pip movement.\n\n![how to calculate pip difference - pip value in currency price](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2020\/02\/pipvalue.jpg)\n\n[BEST BROKERS REVIEWS](https:\/\/www.forex.in.rs\/go\/best-brokers)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex](https:\/\/www.forex.in.rs\/go\/trillion-dollar-ava)\n\n[![trade oil ads](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatradeoil.gif)](https:\/\/www.forex.in.rs\/banner\/tradeoil)\n\n[![cfd stocks trade - ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/cfd-stocks-ads.gif)](https:\/\/www.forex.in.rs\/banner\/trade-cfd)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\nPips help traders determine the profit or loss that they have made on a trade. A pip’s value depends on the size of the lot traded, which is why some traders prefer to use a pip value calculator. Understanding pips is crucial in forex trading as it enables traders to analyze the market and determine when to enter or exit a trade. Additionally, traders can use pips to measure risk and reward ratios, which helps to minimize losses and optimize profits. As such, for anyone looking to be a successful forex trader, understanding the concept of pips is vital.\n\n[![free course banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/04\/free-course.png)](https:\/\/www.forex.in.rs\/go\/free-course-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trendspider banner predict price ](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/09\/trendspider-small.png)](https:\/\/www.forex.in.rs\/go\/trenspider-predict)\n\n[![fxigor website banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2024\/01\/fxigor-banner-300x250.jpg)](https:\/\/www.forex.in.rs\/partner\/get-expert-advisor)\n\n[VANTAGE BROKER](https:\/\/www.forex.in.rs\/review\/vantage)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2025\/01\/get30totradexm.png)](https:\/\/www.forex.in.rs\/banner\/xmbonus)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2025\/01\/lowtradingcostxm.png)](https:\/\/www.forex.in.rs\/banner\/xmbonus)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy.png)](https:\/\/www.forex.in.rs\/banner\/dukascopy300)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[Trillion Dollar Club - 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For example, basis points and pip are commonly used in the financial industry.\n\nA basis point and a pip are measurement units used to express the movement in the value of a financial instrument, currency exchange rate, or interest rate. Understanding the difference between these terms can be crucial for traders, investors, and anyone involved in finance.\n\n## What is the Difference Between a Basis Point and a Pip?\n**In forex CFD trading, basis points and pips are equal values and represent percentage changes in the exchange rate. A basis point or pips are units of measurement equivalent to 1\/100th of 1%, which means one basis point or pips equals 0.01%. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement.**\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex](https:\/\/www.forex.in.rs\/go\/trillion-dollar-ava)\n\n[![trade oil ads](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatradeoil.gif)](https:\/\/www.forex.in.rs\/banner\/tradeoil)\n\n[![cfd stocks trade - ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/cfd-stocks-ads.gif)](https:\/\/www.forex.in.rs\/banner\/trade-cfd)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2025\/01\/get30totradexm.png)](https:\/\/www.forex.in.rs\/banner\/xmbonus)\n\n[BEST BROKERS REVIEWS](https:\/\/www.forex.in.rs\/go\/best-brokers)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2025\/01\/lowtradingcostxm.png)](https:\/\/www.forex.in.rs\/banner\/xmbonus)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy.png)](https:\/\/www.forex.in.rs\/banner\/dukascopy300)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy-forex.jpg)](https:\/\/www.forex.in.rs\/banner\/duka300fx)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy.png)](https:\/\/www.forex.in.rs\/banner\/dukascopy300)\n\n[![fxpro android ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/fxpro-android.png)](https:\/\/www.forex.in.rs\/banner\/fxproandroid)\n\n[![fxpro android ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/fxproandroidblue.png)](https:\/\/www.forex.in.rs\/banner\/fxproandroid)\n\n[![gold trading hotforex ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/11\/hfmGoldSilver.png)](https:\/\/www.forex.in.rs\/banner\/hfmgoldsilver)\n\n[VANTAGE BROKER](https:\/\/www.forex.in.rs\/review\/vantage)\n\n[![trade ETF](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/etf-hfm.jpg)](https:\/\/www.forex.in.rs\/banner\/hfmetfbanner)\n\n[![hfm zerpo spread ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/zero-hfm-spread.jpg)](https:\/\/www.forex.in.rs\/banner\/zerohfmbanner)\n\n[![gold trading hotforex ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/11\/hfmGoldSilver.png)](https:\/\/www.forex.in.rs\/banner\/hfmgoldsilver)\n\n[![trade oil ads](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatradeoil.gif)](https:\/\/www.forex.in.rs\/banner\/tradeoil)\n\n[![cfd stocks trade - 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On the other side, pip expression is characteristic of forex trading and CFD trading, and we need to use it when we describe currency pairs’ price changes.\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex](https:\/\/www.forex.in.rs\/go\/trillion-dollar-ava)\n\n[![trade oil ads](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatradeoil.gif)](https:\/\/www.forex.in.rs\/banner\/tradeoil)\n\n[![cfd stocks trade - ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/cfd-stocks-ads.gif)](https:\/\/www.forex.in.rs\/banner\/trade-cfd)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n## What is a Basis Point?\n**A basis point is a unit of measurement equivalent to 1\/100th of 1%, which means one basis point equals 0.01%. It is a standardized way of measuring the changes in interest rates, bond yields, and other financial instruments. A basis point is widely used in the financial industry to simplify calculations and express tiny percentage changes.**\n\n[![free course banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/04\/free-course.png)](https:\/\/www.forex.in.rs\/go\/free-course-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trendspider banner predict price ](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/09\/trendspider-small.png)](https:\/\/www.forex.in.rs\/go\/trenspider-predict)\n\n[![fxigor website banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2024\/01\/fxigor-banner-300x250.jpg)](https:\/\/www.forex.in.rs\/partner\/get-expert-advisor)\n\n[VANTAGE BROKER](https:\/\/www.forex.in.rs\/review\/vantage)\n\nFor example, if the interest rate moves from 2.50% to 2.60%, it has moved ten basis points or 0.10%. The term basis point is widely used to express the spread between different rates or the difference between bond yields.\n\n## What is a Pip?\n**A pip stands for “percentage in point,” a standardized measure of the movement in the exchange rates of currencies. As mentioned, one pip is the equivalent of 1\/100th of 1% or one basis point. The slightest price movement is possible in a currency pair, representing the fourth decimal place for EURUSD or GBPUSD in the exchange rate.**\n\n[TRADINGVIEW PRO AD-FREE CHARTS](https:\/\/www.forex.in.rs\/banner\/tradingview-pro)\n\n[![fxigor website banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2024\/01\/fxigor-banner-300x250.jpg)](https:\/\/www.forex.in.rs\/partner\/get-expert-advisor)\n\n[Manage \\$300 000 Account. 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To learn more, visit our article on [how to calculate pips.](https:\/\/www.forex.in.rs\/how-to-count-pips\/)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2025\/01\/get30totradexm.png)](https:\/\/www.forex.in.rs\/banner\/xmbonus)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2025\/01\/lowtradingcostxm.png)](https:\/\/www.forex.in.rs\/banner\/xmbonus)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex](https:\/\/www.forex.in.rs\/go\/trillion-dollar-ava)\n\n[![trade oil ads](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatradeoil.gif)](https:\/\/www.forex.in.rs\/banner\/tradeoil)\n\n[![cfd stocks trade - ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/cfd-stocks-ads.gif)](https:\/\/www.forex.in.rs\/banner\/trade-cfd)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy.png)](https:\/\/www.forex.in.rs\/banner\/dukascopy300)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy-forex.jpg)](https:\/\/www.forex.in.rs\/banner\/duka300fx)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy.png)](https:\/\/www.forex.in.rs\/banner\/dukascopy300)\n\n[![free course banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/04\/free-course.png)](https:\/\/www.forex.in.rs\/go\/free-course-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trendspider banner predict price ](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/09\/trendspider-small.png)](https:\/\/www.forex.in.rs\/go\/trenspider-predict)\n\n[![fxigor website banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2024\/01\/fxigor-banner-300x250.jpg)](https:\/\/www.forex.in.rs\/partner\/get-expert-advisor)\n\n[VANTAGE BROKER](https:\/\/www.forex.in.rs\/review\/vantage)\n\n[![fxpro android ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/fxpro-android.png)](https:\/\/www.forex.in.rs\/banner\/fxproandroid)\n\n[![fxpro android ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/fxproandroidblue.png)](https:\/\/www.forex.in.rs\/banner\/fxproandroid)\n\n[![gold trading hotforex ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/11\/hfmGoldSilver.png)](https:\/\/www.forex.in.rs\/banner\/hfmgoldsilver)\n\n[VANTAGE BROKER](https:\/\/www.forex.in.rs\/review\/vantage)\n\n[![trade ETF](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/etf-hfm.jpg)](https:\/\/www.forex.in.rs\/banner\/hfmetfbanner)\n\n[![hfm zerpo spread ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/zero-hfm-spread.jpg)](https:\/\/www.forex.in.rs\/banner\/zerohfmbanner)\n\n[![gold trading hotforex ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/11\/hfmGoldSilver.png)](https:\/\/www.forex.in.rs\/banner\/hfmgoldsilver)\n\n[![trade oil ads](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatradeoil.gif)](https:\/\/www.forex.in.rs\/banner\/tradeoil)\n\n[![cfd stocks trade - 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Invest & Trade Stocks, Crypto, Forex](https:\/\/www.forex.in.rs\/go\/trillion-dollar-ava)\n\n[![trade oil ads](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatradeoil.gif)](https:\/\/www.forex.in.rs\/banner\/tradeoil)\n\n[![cfd stocks trade - ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/cfd-stocks-ads.gif)](https:\/\/www.forex.in.rs\/banner\/trade-cfd)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n- Equal to one-hundredth of one percentage point or 0.01%\n- Used to measure changes in interest rates, bond yields, and other financial metrics\n- Represents small percentage changes\n\n**Pips:**\n\n[TRADINGVIEW PRO AD-FREE CHARTS](https:\/\/www.forex.in.rs\/banner\/tradingview-pro)\n\n[![fxigor website banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2024\/01\/fxigor-banner-300x250.jpg)](https:\/\/www.forex.in.rs\/partner\/get-expert-advisor)\n\n[Manage \\$300 000 Account. Earn as trader\\!](https:\/\/www.forex.in.rs\/funded\/elite-funded)\n\n[![](https:\/\/www.promtfinance.com\/wp-content\/uploads\/2025\/02\/get-loan.png)](https:\/\/www.promtfinance.com\/go\/get-loan)\n\n- It stands for “percentage in point.”\n- Used in currency trading to measure the slightest price change in a currency pair\n- Most currency pairs have one pip as the fourth decimal place\n- Some currency pairs may have different pip values (e.g., Japanese yen)\n- Represents the smallest price change in a currency pair\n\nBoth basis points (bps) and pips are units of measurement used in finance and trading to denote changes in financial instruments’ value, such as currencies or bonds. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement.\n\nA basis point (bps) equals one-hundredth of one percentage point or 0.01%. For example, a change in interest rates from 3.00% to 3.25% represents an increase of 25 bps. Basis points are commonly used to measure changes in interest rates, bond yields, and other financial metrics where small percentage changes are significant.\n\nOn the other hand, a pip stands for “percentage in point” and is a unit of measurement used in currency trading to measure the smallest price change in a currency pair. For most currency pairs, one pip represents the fourth decimal place, such as the change from 1.2000 to 1.2001. However, some currency pairs may have different pip values, such as the Japanese yen, which has a pip value of 0.01 due to its lower exchange rate than other major currencies.\n\n[BEST BROKERS REVIEWS](https:\/\/www.forex.in.rs\/go\/best-brokers)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2025\/01\/get30totradexm.png)](https:\/\/www.forex.in.rs\/banner\/xmbonus)\n\n[![free course banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/04\/free-course.png)](https:\/\/www.forex.in.rs\/go\/free-course-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trendspider banner predict price ](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/09\/trendspider-small.png)](https:\/\/www.forex.in.rs\/go\/trenspider-predict)\n\n[![fxigor website banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2024\/01\/fxigor-banner-300x250.jpg)](https:\/\/www.forex.in.rs\/partner\/get-expert-advisor)\n\n[VANTAGE BROKER](https:\/\/www.forex.in.rs\/review\/vantage)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2025\/01\/lowtradingcostxm.png)](https:\/\/www.forex.in.rs\/banner\/xmbonus)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy.png)](https:\/\/www.forex.in.rs\/banner\/dukascopy300)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy-forex.jpg)](https:\/\/www.forex.in.rs\/banner\/duka300fx)\n\n[![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/dukascopy.png)](https:\/\/www.forex.in.rs\/banner\/dukascopy300)\n\n[![fxpro android ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/fxpro-android.png)](https:\/\/www.forex.in.rs\/banner\/fxproandroid)\n\n[![fxpro android ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/fxproandroidblue.png)](https:\/\/www.forex.in.rs\/banner\/fxproandroid)\n\n[![gold trading hotforex ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/11\/hfmGoldSilver.png)](https:\/\/www.forex.in.rs\/banner\/hfmgoldsilver)\n\n[VANTAGE BROKER](https:\/\/www.forex.in.rs\/review\/vantage)\n\n[![trade ETF](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/etf-hfm.jpg)](https:\/\/www.forex.in.rs\/banner\/hfmetfbanner)\n\n[![hfm zerpo spread ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/05\/zero-hfm-spread.jpg)](https:\/\/www.forex.in.rs\/banner\/zerohfmbanner)\n\n[![gold trading hotforex ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/11\/hfmGoldSilver.png)](https:\/\/www.forex.in.rs\/banner\/hfmgoldsilver)\n\n[![trade oil ads](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatradeoil.gif)](https:\/\/www.forex.in.rs\/banner\/tradeoil)\n\n[![cfd stocks trade - 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For example, a basis point measures the percentage change between two interest rates or bond yields, while a pip measures the percentage change in the exchange rate of two currencies.**\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex](https:\/\/www.forex.in.rs\/go\/trillion-dollar-ava)\n\n[![trade oil ads](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatradeoil.gif)](https:\/\/www.forex.in.rs\/banner\/tradeoil)\n\n[![cfd stocks trade - ad](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/cfd-stocks-ads.gif)](https:\/\/www.forex.in.rs\/banner\/trade-cfd)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[![avatrade ad gold trading](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/09\/avatrade-trade-gold.jpg)](https:\/\/www.forex.in.rs\/banner\/gold-trade-ava)\n\n[![free course banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/04\/free-course.png)](https:\/\/www.forex.in.rs\/go\/free-course-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[Visit ActivTrades](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trade\\_With\\_Enhanced Activetraders](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/08\/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https:\/\/www.forex.in.rs\/go\/activ-promo)\n\n[![Trendspider banner predict price ](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2023\/09\/trendspider-small.png)](https:\/\/www.forex.in.rs\/go\/trenspider-predict)\n\n[![fxigor website banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2024\/01\/fxigor-banner-300x250.jpg)](https:\/\/www.forex.in.rs\/partner\/get-expert-advisor)\n\n[VANTAGE BROKER](https:\/\/www.forex.in.rs\/review\/vantage)\n\nAnother difference is in the way these two units are expressed. For example, a basis point is expressed in decimal points, while pips are expressed in fractional terms, typically including two decimal places.\n\nFurthermore, while a pip represents a slight price movement in the currency exchange rate, a basis point can mean a more significant move, typically used when dealing with expressed interest rates. For instance, a change in interest rates of 0.25% would represent 25 basis points. However, the equivalent in pips would depend on the currency pair being considered, as different currency pairs have varying pip values.\n\n## Conclusion\nTo sum up, the difference between a basis point and a pip lies in what they measure and how they are expressed. A basis point calculates the percentage change between two interest rates or bond yields. At the same time, a pip measures the percentage change in the exchange rate of two currencies addition; a basis point is expressed in decimal points, while a pip is expressed in fractional terms. Proper knowledge and understanding of these terms can help you make informed decisions when dealing with financial instruments and currency pairs as a trader or investor.\n\n- [About](https:\/\/www.forex.in.rs\/pips-vs-bps\/#abh_about)\n- [Latest Posts](https:\/\/www.forex.in.rs\/pips-vs-bps\/#abh_posts)\n\n[![Fxigor](https:\/\/www.forex.in.rs\/wp-content\/uploads\/gravatar\/imagefxigor.jpeg)](https:\/\/www.forex.in.rs\/author\/orfejs\/ \"Fxigor\")\n\n[Fxigor](https:\/\/www.forex.in.rs\/author\/orfejs\/)\n\nTrader at Leanta Capital\n\nIgor has been a trader since 2007. Currently, Igor works for several prop trading companies.  \nHe is an expert in financial niche, long-term trading, and weekly technical levels.   \n  \nThe primary field of Igor's research is the application of machine learning in algorithmic trading.   \n  \nEducation: Computer Engineering and Ph.D. in machine learning.   \n  \nIgor regularly publishes trading-related videos on the [Fxigor Youtube channel](https:\/\/www.youtube.com\/@FXIGOR).  \n  \nTo contact Igor write on:   \nigor@forex.in.rs\n\n[![Fxigor](https:\/\/www.forex.in.rs\/wp-content\/uploads\/gravatar\/imagefxigor.jpeg)](https:\/\/www.forex.in.rs\/author\/orfejs\/ \"Fxigor\")\n\nLatest posts by Fxigor ([see all](https:\/\/www.forex.in.rs\/author\/orfejs\/))\n\n- [Vantage Markets Forex Broker Review](https:\/\/www.forex.in.rs\/vantage-broker-review\/)\n- [Thor Young’s Trader Strategy: Unlocking the Power of Psychology and Pivot Points](https:\/\/www.forex.in.rs\/thor-young-strategy\/) -\n- [Akil Stokes Playbook & Strategy: How He Actually Trades](https:\/\/www.forex.in.rs\/akil-stokes-strategy\/) -\n\nRelated posts:\n\n1. [Cost Basis of Gifted Stock](https:\/\/www.forex.in.rs\/cost-basis-of-gifted-stock\/ \"Cost Basis of Gifted Stock\")\n2. [How to Calculate Pips in NASDAQ? – Count Pips on NAS100](https:\/\/www.forex.in.rs\/how-to-count-pips-on-nas100\/ \"How to Calculate Pips in NASDAQ? – Count Pips on NAS100\")\n3. [How to Calculate US30 Pips? – Count Pips on DOW](https:\/\/www.forex.in.rs\/how-to-calculate-us30-pips\/ \"How to Calculate US30 Pips? – Count Pips on DOW\")\n4. [Difference Between Forex Demo and Real Account](https:\/\/www.forex.in.rs\/difference-between-forex-demo-and-real-account\/ \"Difference Between Forex Demo and Real Account\")\n5. [How to Calculate Pips on Bitcoin? – BTCUSD Bitcoin Pips Calculator\\!](https:\/\/www.forex.in.rs\/how-to-calculate-pips-on-bitcoin\/ \"How to Calculate Pips on Bitcoin? – BTCUSD Bitcoin Pips Calculator!\")\n6. [How to Calculate Pips in MT4?](https:\/\/www.forex.in.rs\/how-to-count-pips\/ \"How to Calculate Pips in MT4?\")\n7. [How Many Pips Does Gold Move in a Day?](https:\/\/www.forex.in.rs\/how-many-pips-does-gold-move-in-a-day\/ \"How Many Pips Does Gold Move in a Day?\")\n8. [How to view Profit as Pips in MT4? – Display Profit as Pips\\!](https:\/\/www.forex.in.rs\/view-profit-as-pips\/ \"How to view Profit as Pips in MT4? – Display Profit as Pips!\")\n9. [CFD vs. ETF – Difference Between ETF and CFD\\!](https:\/\/www.forex.in.rs\/cfd-vs-etf-trading-index-etfs-or-cfds\/ \"CFD vs. ETF – Difference Between ETF and CFD!\")\n10. [What is the Difference Between Nasdaq and Nyse?](https:\/\/www.forex.in.rs\/nasdaq-vs-nyse\/ \"What is the Difference Between Nasdaq and Nyse?\")\n11. [Difference Between Dow Jones S\\&P 500 and Nasdaq](https:\/\/www.forex.in.rs\/difference-between-dow-jones-sp-500-and-nasdaq\/ \"Difference Between Dow Jones S&P 500 and Nasdaq\")\n12. [The Price Difference Between MT4 and TradingView\\!](https:\/\/www.forex.in.rs\/price-mt4-and-tradingview\/ \"The Price Difference Between MT4 and TradingView!\")\n\n[BEST BROKERS REVIEWS](https:\/\/www.forex.in.rs\/go\/best-brokers)\n\n[TRADINGVIEW PRO AD-FREE CHARTS](https:\/\/www.forex.in.rs\/banner\/tradingview-pro)\n\n[![fxigor website banner](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2024\/01\/fxigor-banner-300x250.jpg)](https:\/\/www.forex.in.rs\/partner\/get-expert-advisor)\n\n[Manage \\$300 000 Account. Earn as trader\\!](https:\/\/www.forex.in.rs\/funded\/elite-funded)\n\n[![](https:\/\/www.promtfinance.com\/wp-content\/uploads\/2025\/02\/get-loan.png)](https:\/\/www.promtfinance.com\/go\/get-loan)\n\n[Fxigor](https:\/\/www.forex.in.rs\/author\/orfejs\/)\n\nIgor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the [Fxigor Youtube channel](https:\/\/www.youtube.com\/@FXIGOR). To contact Igor write on: igor@forex.in.rs\n\n[**Trade gold and silver.**](https:\/\/www.forex.in.rs\/banner\/hfmgoldsilver) Visit the broker's page and start trading high liquidity spot metals - the most traded instruments in the world.\n\n[Trade Gold & Silver](https:\/\/www.forex.in.rs\/banner\/hfmgoldsilver) ![](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2020\/06\/icon-8.png)\n\n![](http:\/\/www.forex.in.rs\/brokers\/spot4.jpg)\n\n![](http:\/\/www.forex.in.rs\/brokers\/spot5.jpg)\n\n[![GET FREE MEAN REVERSION STRATEGY](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2024\/01\/BANNER-SMALL.png)](https:\/\/www.forex.in.rs\/newsletter\/)\n\n![](http:\/\/www.forex.in.rs\/brokers\/spot1.jpg) ![](http:\/\/www.forex.in.rs\/brokers\/spot2.jpg)\n\n### Recent Posts\n[link to Vantage Markets Forex Broker Review](https:\/\/www.forex.in.rs\/vantage-broker-review\/)\n\n[Vantage Markets Forex Broker Review](https:\/\/www.forex.in.rs\/vantage-broker-review\/)\n\nVantage Markets is a well-established global forex and CFD broker known for tight spreads, fast execution, and access to deep liquidity. The platform supports MT4, MT5, and its own advanced...\n\n[Continue Reading](https:\/\/www.forex.in.rs\/vantage-broker-review\/)\n\n[link to Thor Young's Trader Strategy: Unlocking the Power of Psychology and Pivot Points](https:\/\/www.forex.in.rs\/thor-young-strategy\/)\n\n[Thor Young's Trader Strategy: Unlocking the Power of Psychology and Pivot Points](https:\/\/www.forex.in.rs\/thor-young-strategy\/)\n\nIn this interview, Thor Young, a moderator at Bearbull Traders and a seasoned day trader, shares his journey from struggling to finding success in the markets. 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[Education](https:\/\/www.forex.in.rs\/category\/learn-forex-trading\/)\n\n### Forex social network\n- [RSS](https:\/\/www.forex.in.rs\/feed\/)\n- [Twitter](https:\/\/twitter.com\/forexinrs)\n- [FxIgor Youtube Channel](https:\/\/www.youtube.com\/channel\/UCc3BOr9eHWP117GWQqY_eNA)\n- [Fxigor Facebook](https:\/\/www.facebook.com\/fxigorcom)\n- [NimbleIgor Instagram](https:\/\/www.instagram.com\/p\/DGkhzNPtN5_\/)\n- [TikTok Fxigor](https:\/\/www.tiktok.com\/@fxigor3)\n- [Privacy Policy](https:\/\/www.forex.in.rs\/wpautoterms\/privacy-policy\/)\n- [Contact us](https:\/\/www.forex.in.rs\/contact-us\/)\n\n### Spanish language\n[![Spanish language website](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2020\/05\/spain-language-300x300.png)](https:\/\/www.forex.in.rs\/mercado\/)\n\n**Risk Warning:** Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high risk to your capital. Trading such products is risky, and you may lose all your invested capital. Before deciding to trade, please understand the risks involved, considering your investment objectives and experience level.\n***\n© 2026 Copyright Forex Education\n\nClose this module\n\n### DOWNLOAD\nDownload the PDF guide & indicators for the\n\nMEAN REVERSION trading strategy.\n\n[DOWNLOAD](https:\/\/www.forex.in.rs\/newsletter\/)\n\n[No thanks, I’m not interested\\!](https:\/\/www.forex.in.rs\/pips-vs-bps\/)\n\n[Terms and Conditions](https:\/\/www.forex.in.rs\/wpautoterms\/terms-and-conditions\/) - [Privacy Policy](https:\/\/www.forex.in.rs\/wpautoterms\/privacy-policy\/)","attrs_readable_markdown":"Pips, also known as price interest points, are one of the most fundamental terms in forex trading. Most forex traders have to deal with pips daily. A pip is a measurement unit representing the smallest change in a currency pair’s value. It is the fourth decimal place in a currency pair’s price. For instance, if the EUR\/USD pair moves from 1.1234 to 1.1235, that represents a one-pip movement.\n\n![how to calculate pip difference - pip value in currency price](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2020\/02\/pipvalue.jpg)\n\nPips help traders determine the profit or loss that they have made on a trade. A pip’s value depends on the size of the lot traded, which is why some traders prefer to use a pip value calculator. Understanding pips is crucial in forex trading as it enables traders to analyze the market and determine when to enter or exit a trade. Additionally, traders can use pips to measure risk and reward ratios, which helps to minimize losses and optimize profits. As such, for anyone looking to be a successful forex trader, understanding the concept of pips is vital.\n\nHowever, we can see another expression, the basis point in terminology.\n\nWhen it comes to trading and finance, it is essential to understand the language and the different terminologies used to help you make informed decisions. For example, basis points and pip are commonly used in the financial industry.\n\nA basis point and a pip are measurement units used to express the movement in the value of a financial instrument, currency exchange rate, or interest rate. Understanding the difference between these terms can be crucial for traders, investors, and anyone involved in finance.\n\n## What is the Difference Between a Basis Point and a Pip?\n**In forex CFD trading, basis points and pips are equal values and represent percentage changes in the exchange rate. A basis point or pips are units of measurement equivalent to 1\/100th of 1%, which means one basis point or pips equals 0.01%. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement.**\n\nWe should use the bps (base point) expression when discussing interest rates, bond yields, and other financial metrics. On the other side, pip expression is characteristic of forex trading and CFD trading, and we need to use it when we describe currency pairs’ price changes.\n\n## What is a Basis Point?\n**A basis point is a unit of measurement equivalent to 1\/100th of 1%, which means one basis point equals 0.01%. It is a standardized way of measuring the changes in interest rates, bond yields, and other financial instruments. A basis point is widely used in the financial industry to simplify calculations and express tiny percentage changes.**\n\nFor example, if the interest rate moves from 2.50% to 2.60%, it has moved ten basis points or 0.10%. The term basis point is widely used to express the spread between different rates or the difference between bond yields.\n\n## What is a Pip?\n**A pip stands for “percentage in point,” a standardized measure of the movement in the exchange rates of currencies. As mentioned, one pip is the equivalent of 1\/100th of 1% or one basis point. The slightest price movement is possible in a currency pair, representing the fourth decimal place for EURUSD or GBPUSD in the exchange rate.**\n\nFor instance, if the EUR\/USD pair moves from 1.2000 to 1.2010, it has moved ten pips. A pip is widely used in Forex trading to quantify the profit or loss of a trade. To learn more, visit our article on [how to calculate pips.](https:\/\/www.forex.in.rs\/how-to-count-pips\/)\n\n![How to calculate pips if you trade in lots in Metatrader](https:\/\/www.forex.in.rs\/wp-content\/uploads\/2022\/06\/how-to-calculate-pips-if-you-trade-in-lots-scaled.jpg)\n\n## Difference Between a Basis Point and Pip\n**Basis Points (bps):**\n\n- Equal to one-hundredth of one percentage point or 0.01%\n- Used to measure changes in interest rates, bond yields, and other financial metrics\n- Represents small percentage changes\n\n**Pips:**\n\n- It stands for “percentage in point.”\n- Used in currency trading to measure the slightest price change in a currency pair\n- Most currency pairs have one pip as the fourth decimal place\n- Some currency pairs may have different pip values (e.g., Japanese yen)\n- Represents the smallest price change in a currency pair\n\nBoth basis points (bps) and pips are units of measurement used in finance and trading to denote changes in financial instruments’ value, such as currencies or bonds. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement.\n\nA basis point (bps) equals one-hundredth of one percentage point or 0.01%. For example, a change in interest rates from 3.00% to 3.25% represents an increase of 25 bps. Basis points are commonly used to measure changes in interest rates, bond yields, and other financial metrics where small percentage changes are significant.\n\nOn the other hand, a pip stands for “percentage in point” and is a unit of measurement used in currency trading to measure the smallest price change in a currency pair. For most currency pairs, one pip represents the fourth decimal place, such as the change from 1.2000 to 1.2001. However, some currency pairs may have different pip values, such as the Japanese yen, which has a pip value of 0.01 due to its lower exchange rate than other major currencies.\n\n**While both the pip and the basis point represent a percentage change, they are used to express different things. For example, a basis point measures the percentage change between two interest rates or bond yields, while a pip measures the percentage change in the exchange rate of two currencies.**\n\nAnother difference is in the way these two units are expressed. For example, a basis point is expressed in decimal points, while pips are expressed in fractional terms, typically including two decimal places.\n\nFurthermore, while a pip represents a slight price movement in the currency exchange rate, a basis point can mean a more significant move, typically used when dealing with expressed interest rates. For instance, a change in interest rates of 0.25% would represent 25 basis points. However, the equivalent in pips would depend on the currency pair being considered, as different currency pairs have varying pip values.\n\n## Conclusion\nTo sum up, the difference between a basis point and a pip lies in what they measure and how they are expressed. A basis point calculates the percentage change between two interest rates or bond yields. At the same time, a pip measures the percentage change in the exchange rate of two currencies addition; a basis point is expressed in decimal points, while a pip is expressed in fractional terms. Proper knowledge and understanding of these terms can help you make informed decisions when dealing with financial instruments and currency pairs as a trader or investor.\n\n- [About](https:\/\/www.forex.in.rs\/pips-vs-bps\/#abh_about)\n- [Latest Posts](https:\/\/www.forex.in.rs\/pips-vs-bps\/#abh_posts)\n\n[![Fxigor](https:\/\/www.forex.in.rs\/wp-content\/uploads\/gravatar\/imagefxigor.jpeg)](https:\/\/www.forex.in.rs\/author\/orfejs\/ \"Fxigor\")\n\nTrader at Leanta Capital\n\nIgor has been a trader since 2007. Currently, Igor works for several prop trading companies.  \nHe is an expert in financial niche, long-term trading, and weekly technical levels.\n\nThe primary field of Igor's research is the application of machine learning in algorithmic trading.\n\nEducation: Computer Engineering and Ph.D. in machine learning.\n\nIgor regularly publishes trading-related videos on the [Fxigor Youtube channel](https:\/\/www.youtube.com\/@FXIGOR).\n\nTo contact Igor write on:   \nigor@forex.in.rs\n\n[![Fxigor](https:\/\/www.forex.in.rs\/wp-content\/uploads\/gravatar\/imagefxigor.jpeg)](https:\/\/www.forex.in.rs\/author\/orfejs\/ \"Fxigor\")","meta_canonical":null}

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Boilerpipe Text	Pips, also known as price interest points, are one of the most fundamental terms in forex trading. Most forex traders have to deal with pips daily. A pip is a measurement unit representing the smallest change in a currency pair’s value. It is the fourth decimal place in a currency pair’s price. For instance, if the EUR/USD pair moves from 1.1234 to 1.1235, that represents a one-pip movement. Pips help traders determine the profit or loss that they have made on a trade. A pip’s value depends on the size of the lot traded, which is why some traders prefer to use a pip value calculator. Understanding pips is crucial in forex trading as it enables traders to analyze the market and determine when to enter or exit a trade. Additionally, traders can use pips to measure risk and reward ratios, which helps to minimize losses and optimize profits. As such, for anyone looking to be a successful forex trader, understanding the concept of pips is vital. However, we can see another expression, the basis point in terminology. When it comes to trading and finance, it is essential to understand the language and the different terminologies used to help you make informed decisions. For example, basis points and pip are commonly used in the financial industry. A basis point and a pip are measurement units used to express the movement in the value of a financial instrument, currency exchange rate, or interest rate. Understanding the difference between these terms can be crucial for traders, investors, and anyone involved in finance. What is the Difference Between a Basis Point and a Pip? In forex CFD trading, basis points and pips are equal values and represent percentage changes in the exchange rate. A basis point or pips are units of measurement equivalent to 1/100th of 1%, which means one basis point or pips equals 0.01%. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement. We should use the bps (base point) expression when discussing interest rates, bond yields, and other financial metrics. On the other side, pip expression is characteristic of forex trading and CFD trading, and we need to use it when we describe currency pairs’ price changes. What is a Basis Point? A basis point is a unit of measurement equivalent to 1/100th of 1%, which means one basis point equals 0.01%. It is a standardized way of measuring the changes in interest rates, bond yields, and other financial instruments. A basis point is widely used in the financial industry to simplify calculations and express tiny percentage changes. For example, if the interest rate moves from 2.50% to 2.60%, it has moved ten basis points or 0.10%. The term basis point is widely used to express the spread between different rates or the difference between bond yields. What is a Pip? A pip stands for “percentage in point,” a standardized measure of the movement in the exchange rates of currencies. As mentioned, one pip is the equivalent of 1/100th of 1% or one basis point. The slightest price movement is possible in a currency pair, representing the fourth decimal place for EURUSD or GBPUSD in the exchange rate. For instance, if the EUR/USD pair moves from 1.2000 to 1.2010, it has moved ten pips. A pip is widely used in Forex trading to quantify the profit or loss of a trade. To learn more, visit our article on how to calculate pips. Difference Between a Basis Point and Pip Basis Points (bps): Equal to one-hundredth of one percentage point or 0.01% Used to measure changes in interest rates, bond yields, and other financial metrics Represents small percentage changes Pips: It stands for “percentage in point.” Used in currency trading to measure the slightest price change in a currency pair Most currency pairs have one pip as the fourth decimal place Some currency pairs may have different pip values (e.g., Japanese yen) Represents the smallest price change in a currency pair Both basis points (bps) and pips are units of measurement used in finance and trading to denote changes in financial instruments’ value, such as currencies or bonds. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement. A basis point (bps) equals one-hundredth of one percentage point or 0.01%. For example, a change in interest rates from 3.00% to 3.25% represents an increase of 25 bps. Basis points are commonly used to measure changes in interest rates, bond yields, and other financial metrics where small percentage changes are significant. On the other hand, a pip stands for “percentage in point” and is a unit of measurement used in currency trading to measure the smallest price change in a currency pair. For most currency pairs, one pip represents the fourth decimal place, such as the change from 1.2000 to 1.2001. However, some currency pairs may have different pip values, such as the Japanese yen, which has a pip value of 0.01 due to its lower exchange rate than other major currencies. While both the pip and the basis point represent a percentage change, they are used to express different things. For example, a basis point measures the percentage change between two interest rates or bond yields, while a pip measures the percentage change in the exchange rate of two currencies. Another difference is in the way these two units are expressed. For example, a basis point is expressed in decimal points, while pips are expressed in fractional terms, typically including two decimal places. Furthermore, while a pip represents a slight price movement in the currency exchange rate, a basis point can mean a more significant move, typically used when dealing with expressed interest rates. For instance, a change in interest rates of 0.25% would represent 25 basis points. However, the equivalent in pips would depend on the currency pair being considered, as different currency pairs have varying pip values. Conclusion To sum up, the difference between a basis point and a pip lies in what they measure and how they are expressed. A basis point calculates the percentage change between two interest rates or bond yields. At the same time, a pip measures the percentage change in the exchange rate of two currencies addition; a basis point is expressed in decimal points, while a pip is expressed in fractional terms. Proper knowledge and understanding of these terms can help you make informed decisions when dealing with financial instruments and currency pairs as a trader or investor. About Latest Posts Trader at Leanta Capital Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the Fxigor Youtube channel . To contact Igor write on: igor@forex.in.rs
Markdown	[Skip to content](https://www.forex.in.rs/pips-vs-bps/#content) MENU [![forex.in.rs logo](https://www.forex.in.rs/wp-content/uploads/2023/07/forex-logo-full-300x183.jpg)](https://www.forex.in.rs/) [Search](https://www.forex.in.rs/pips-vs-bps/#open) - [Home](https://www.forex.in.rs/) - [Best Forex Brokers](https://www.forex.in.rs/the-best-forex-brokers-ratings/) - [Forex Prop Funding](https://www.forex.in.rs/all-forex-prop-companies/) - [Learn Trading](https://www.forex.in.rs/education-articles-list/) - [Rates](https://www.forex.in.rs/rates/) - [Affiliate](https://www.forex.in.rs/forex-affiliate-program-ranking-list/) - [About](https://www.forex.in.rs/about-us/) - [Contact](https://www.forex.in.rs/contact-us/) # What is the Difference Between a Basis Point and Pip? – Pips vs. Bps Written by [Fxigor](https://www.forex.in.rs/author/orfejs/) in [FAQ](https://www.forex.in.rs/category/faq/) Table of Contents Toggle - [What is the Difference Between a Basis Point and a Pip?](https://www.forex.in.rs/pips-vs-bps/#What_is_the_Difference_Between_a_Basis_Point_and_a_Pip) - [What is a Basis Point?](https://www.forex.in.rs/pips-vs-bps/#What_is_a_Basis_Point) - [What is a Pip?](https://www.forex.in.rs/pips-vs-bps/#What_is_a_Pip) - [Difference Between a Basis Point and Pip](https://www.forex.in.rs/pips-vs-bps/#Difference_Between_a_Basis_Point_and_Pip) - [Conclusion](https://www.forex.in.rs/pips-vs-bps/#Conclusion) Pips, also known as price interest points, are one of the most fundamental terms in forex trading. Most forex traders have to deal with pips daily. A pip is a measurement unit representing the smallest change in a currency pair’s value. It is the fourth decimal place in a currency pair’s price. For instance, if the EUR/USD pair moves from 1.1234 to 1.1235, that represents a one-pip movement. ![how to calculate pip difference - pip value in currency price](https://www.forex.in.rs/wp-content/uploads/2020/02/pipvalue.jpg) [BEST BROKERS REVIEWS](https://www.forex.in.rs/go/best-brokers) [![avatrade ad gold trading](https://www.forex.in.rs/wp-content/uploads/2022/09/avatrade-trade-gold.jpg)](https://www.forex.in.rs/banner/gold-trade-ava) [Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex](https://www.forex.in.rs/go/trillion-dollar-ava) [![trade oil ads](https://www.forex.in.rs/wp-content/uploads/2022/09/avatradeoil.gif)](https://www.forex.in.rs/banner/tradeoil) [![cfd stocks trade - ad](https://www.forex.in.rs/wp-content/uploads/2022/09/cfd-stocks-ads.gif)](https://www.forex.in.rs/banner/trade-cfd) [![avatrade ad gold trading](https://www.forex.in.rs/wp-content/uploads/2022/09/avatrade-trade-gold.jpg)](https://www.forex.in.rs/banner/gold-trade-ava) [![avatrade ad gold trading](https://www.forex.in.rs/wp-content/uploads/2022/09/avatrade-trade-gold.jpg)](https://www.forex.in.rs/banner/gold-trade-ava) Pips help traders determine the profit or loss that they have made on a trade. A pip’s value depends on the size of the lot traded, which is why some traders prefer to use a pip value calculator. Understanding pips is crucial in forex trading as it enables traders to analyze the market and determine when to enter or exit a trade. Additionally, traders can use pips to measure risk and reward ratios, which helps to minimize losses and optimize profits. As such, for anyone looking to be a successful forex trader, understanding the concept of pips is vital. 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When it comes to trading and finance, it is essential to understand the language and the different terminologies used to help you make informed decisions. For example, basis points and pip are commonly used in the financial industry. A basis point and a pip are measurement units used to express the movement in the value of a financial instrument, currency exchange rate, or interest rate. Understanding the difference between these terms can be crucial for traders, investors, and anyone involved in finance. ## What is the Difference Between a Basis Point and a Pip? In forex CFD trading, basis points and pips are equal values and represent percentage changes in the exchange rate. A basis point or pips are units of measurement equivalent to 1/100th of 1%, which means one basis point or pips equals 0.01%. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement. 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It is a standardized way of measuring the changes in interest rates, bond yields, and other financial instruments. A basis point is widely used in the financial industry to simplify calculations and express tiny percentage changes. 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The term basis point is widely used to express the spread between different rates or the difference between bond yields. ## What is a Pip? A pip stands for “percentage in point,” a standardized measure of the movement in the exchange rates of currencies. As mentioned, one pip is the equivalent of 1/100th of 1% or one basis point. The slightest price movement is possible in a currency pair, representing the fourth decimal place for EURUSD or GBPUSD in the exchange rate. [TRADINGVIEW PRO AD-FREE CHARTS](https://www.forex.in.rs/banner/tradingview-pro) [![fxigor website banner](https://www.forex.in.rs/wp-content/uploads/2024/01/fxigor-banner-300x250.jpg)](https://www.forex.in.rs/partner/get-expert-advisor) [Manage \$300 000 Account. 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Invest & Trade Stocks, Crypto, Forex](https://www.forex.in.rs/go/trillion-dollar-ava) [![trade oil ads](https://www.forex.in.rs/wp-content/uploads/2022/09/avatradeoil.gif)](https://www.forex.in.rs/banner/tradeoil) [![cfd stocks trade - ad](https://www.forex.in.rs/wp-content/uploads/2022/09/cfd-stocks-ads.gif)](https://www.forex.in.rs/banner/trade-cfd) [![avatrade ad gold trading](https://www.forex.in.rs/wp-content/uploads/2022/09/avatrade-trade-gold.jpg)](https://www.forex.in.rs/banner/gold-trade-ava) [![avatrade ad gold trading](https://www.forex.in.rs/wp-content/uploads/2022/09/avatrade-trade-gold.jpg)](https://www.forex.in.rs/banner/gold-trade-ava) - Equal to one-hundredth of one percentage point or 0.01% - Used to measure changes in interest rates, bond yields, and other financial metrics - Represents small percentage changes Pips: [TRADINGVIEW PRO AD-FREE CHARTS](https://www.forex.in.rs/banner/tradingview-pro) [![fxigor website banner](https://www.forex.in.rs/wp-content/uploads/2024/01/fxigor-banner-300x250.jpg)](https://www.forex.in.rs/partner/get-expert-advisor) [Manage \$300 000 Account. Earn as trader\!](https://www.forex.in.rs/funded/elite-funded) [![](https://www.promtfinance.com/wp-content/uploads/2025/02/get-loan.png)](https://www.promtfinance.com/go/get-loan) - It stands for “percentage in point.” - Used in currency trading to measure the slightest price change in a currency pair - Most currency pairs have one pip as the fourth decimal place - Some currency pairs may have different pip values (e.g., Japanese yen) - Represents the smallest price change in a currency pair Both basis points (bps) and pips are units of measurement used in finance and trading to denote changes in financial instruments’ value, such as currencies or bonds. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement. A basis point (bps) equals one-hundredth of one percentage point or 0.01%. For example, a change in interest rates from 3.00% to 3.25% represents an increase of 25 bps. Basis points are commonly used to measure changes in interest rates, bond yields, and other financial metrics where small percentage changes are significant. On the other hand, a pip stands for “percentage in point” and is a unit of measurement used in currency trading to measure the smallest price change in a currency pair. For most currency pairs, one pip represents the fourth decimal place, such as the change from 1.2000 to 1.2001. However, some currency pairs may have different pip values, such as the Japanese yen, which has a pip value of 0.01 due to its lower exchange rate than other major currencies. [BEST BROKERS REVIEWS](https://www.forex.in.rs/go/best-brokers) [![](https://www.forex.in.rs/wp-content/uploads/2025/01/get30totradexm.png)](https://www.forex.in.rs/banner/xmbonus) [![free course banner](https://www.forex.in.rs/wp-content/uploads/2022/04/free-course.png)](https://www.forex.in.rs/go/free-course-promo) [Visit ActivTrades](https://www.forex.in.rs/go/activ-promo) [![Trade\_With\_Enhanced Activetraders](https://www.forex.in.rs/wp-content/uploads/2023/08/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https://www.forex.in.rs/go/activ-promo) [Visit ActivTrades](https://www.forex.in.rs/go/activ-promo) [![Trade\_With\_Enhanced Activetraders](https://www.forex.in.rs/wp-content/uploads/2023/08/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https://www.forex.in.rs/go/activ-promo) [![Trendspider banner predict price ](https://www.forex.in.rs/wp-content/uploads/2023/09/trendspider-small.png)](https://www.forex.in.rs/go/trenspider-predict) [![fxigor website banner](https://www.forex.in.rs/wp-content/uploads/2024/01/fxigor-banner-300x250.jpg)](https://www.forex.in.rs/partner/get-expert-advisor) [VANTAGE BROKER](https://www.forex.in.rs/review/vantage) [![](https://www.forex.in.rs/wp-content/uploads/2025/01/lowtradingcostxm.png)](https://www.forex.in.rs/banner/xmbonus) [![](https://www.forex.in.rs/wp-content/uploads/2022/05/dukascopy.png)](https://www.forex.in.rs/banner/dukascopy300) [![](https://www.forex.in.rs/wp-content/uploads/2022/05/dukascopy-forex.jpg)](https://www.forex.in.rs/banner/duka300fx) [![](https://www.forex.in.rs/wp-content/uploads/2022/05/dukascopy.png)](https://www.forex.in.rs/banner/dukascopy300) [![fxpro android ad](https://www.forex.in.rs/wp-content/uploads/2022/05/fxpro-android.png)](https://www.forex.in.rs/banner/fxproandroid) [![fxpro android ad](https://www.forex.in.rs/wp-content/uploads/2022/05/fxproandroidblue.png)](https://www.forex.in.rs/banner/fxproandroid) [![gold trading hotforex ad](https://www.forex.in.rs/wp-content/uploads/2022/11/hfmGoldSilver.png)](https://www.forex.in.rs/banner/hfmgoldsilver) [VANTAGE BROKER](https://www.forex.in.rs/review/vantage) [![trade ETF](https://www.forex.in.rs/wp-content/uploads/2022/05/etf-hfm.jpg)](https://www.forex.in.rs/banner/hfmetfbanner) [![hfm zerpo spread ad](https://www.forex.in.rs/wp-content/uploads/2022/05/zero-hfm-spread.jpg)](https://www.forex.in.rs/banner/zerohfmbanner) [![gold trading hotforex ad](https://www.forex.in.rs/wp-content/uploads/2022/11/hfmGoldSilver.png)](https://www.forex.in.rs/banner/hfmgoldsilver) [![trade oil ads](https://www.forex.in.rs/wp-content/uploads/2022/09/avatradeoil.gif)](https://www.forex.in.rs/banner/tradeoil) [![cfd stocks trade - ad](https://www.forex.in.rs/wp-content/uploads/2022/09/cfd-stocks-ads.gif)](https://www.forex.in.rs/banner/trade-cfd) [![avatrade ad gold trading](https://www.forex.in.rs/wp-content/uploads/2022/09/avatrade-trade-gold.jpg)](https://www.forex.in.rs/banner/gold-trade-ava) [![exness stable spread ad](https://www.forex.in.rs/wp-content/uploads/2022/09/exness-stable-spread-ad.jpg)](https://www.forex.in.rs/banner/exness-trade) [![trade metals ad](https://www.forex.in.rs/wp-content/uploads/2022/09/trade-gold-exness.jpg)](https://www.forex.in.rs/banner/trade-gold-exness) [![trade crypto icm](https://www.forex.in.rs/wp-content/uploads/2022/09/EN_300x250_Cryptos_FSA.jpg)](https://www.forex.in.rs/banner/icm-promo-crypto) [GET FUNDED TRADING ACCOUNT](https://www.forex.in.rs/banner/get-funded-account) [TRADINGVIEW PRO AD-FREE CHARTS](https://www.forex.in.rs/banner/tradingview-pro) [![Trendspider banner predict price ](https://www.forex.in.rs/wp-content/uploads/2023/09/trendspider-small.png)](https://www.forex.in.rs/go/trenspider-predict) [![strategy provider banner](https://www.forex.in.rs/wp-content/uploads/2023/09/strategy-provider.gif)](https://www.forex.in.rs/banner/strategy-provider) [![fxigor website banner](https://www.forex.in.rs/wp-content/uploads/2024/01/fxigor-banner-300x250.jpg)](https://www.forex.in.rs/partner/get-expert-advisor) [![promo bonus instaforex](https://www.forex.in.rs/wp-content/uploads/2024/02/ndb_borussia_300x250_en.gif)](https://www.forex.in.rs/go/insta-borussia) [![instaforex bonus promo](https://www.forex.in.rs/wp-content/uploads/2024/02/30_bonus_300x250_en.png)](https://www.forex.in.rs/go/insta-bonus) [VANTAGE BROKER](https://www.forex.in.rs/review/vantage) While both the pip and the basis point represent a percentage change, they are used to express different things. For example, a basis point measures the percentage change between two interest rates or bond yields, while a pip measures the percentage change in the exchange rate of two currencies. [![avatrade ad gold trading](https://www.forex.in.rs/wp-content/uploads/2022/09/avatrade-trade-gold.jpg)](https://www.forex.in.rs/banner/gold-trade-ava) [Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex](https://www.forex.in.rs/go/trillion-dollar-ava) [![trade oil ads](https://www.forex.in.rs/wp-content/uploads/2022/09/avatradeoil.gif)](https://www.forex.in.rs/banner/tradeoil) [![cfd stocks trade - ad](https://www.forex.in.rs/wp-content/uploads/2022/09/cfd-stocks-ads.gif)](https://www.forex.in.rs/banner/trade-cfd) [![avatrade ad gold trading](https://www.forex.in.rs/wp-content/uploads/2022/09/avatrade-trade-gold.jpg)](https://www.forex.in.rs/banner/gold-trade-ava) [![avatrade ad gold trading](https://www.forex.in.rs/wp-content/uploads/2022/09/avatrade-trade-gold.jpg)](https://www.forex.in.rs/banner/gold-trade-ava) [![free course banner](https://www.forex.in.rs/wp-content/uploads/2022/04/free-course.png)](https://www.forex.in.rs/go/free-course-promo) [Visit ActivTrades](https://www.forex.in.rs/go/activ-promo) [![Trade\_With\_Enhanced Activetraders](https://www.forex.in.rs/wp-content/uploads/2023/08/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https://www.forex.in.rs/go/activ-promo) [Visit ActivTrades](https://www.forex.in.rs/go/activ-promo) [![Trade\_With\_Enhanced Activetraders](https://www.forex.in.rs/wp-content/uploads/2023/08/Trade_With_Enhanced_Funds_Protection-300x250-English.jpg)](https://www.forex.in.rs/go/activ-promo) [![Trendspider banner predict price ](https://www.forex.in.rs/wp-content/uploads/2023/09/trendspider-small.png)](https://www.forex.in.rs/go/trenspider-predict) [![fxigor website banner](https://www.forex.in.rs/wp-content/uploads/2024/01/fxigor-banner-300x250.jpg)](https://www.forex.in.rs/partner/get-expert-advisor) [VANTAGE BROKER](https://www.forex.in.rs/review/vantage) Another difference is in the way these two units are expressed. For example, a basis point is expressed in decimal points, while pips are expressed in fractional terms, typically including two decimal places. Furthermore, while a pip represents a slight price movement in the currency exchange rate, a basis point can mean a more significant move, typically used when dealing with expressed interest rates. For instance, a change in interest rates of 0.25% would represent 25 basis points. However, the equivalent in pips would depend on the currency pair being considered, as different currency pairs have varying pip values. ## Conclusion To sum up, the difference between a basis point and a pip lies in what they measure and how they are expressed. A basis point calculates the percentage change between two interest rates or bond yields. At the same time, a pip measures the percentage change in the exchange rate of two currencies addition; a basis point is expressed in decimal points, while a pip is expressed in fractional terms. Proper knowledge and understanding of these terms can help you make informed decisions when dealing with financial instruments and currency pairs as a trader or investor. - [About](https://www.forex.in.rs/pips-vs-bps/#abh_about) - [Latest Posts](https://www.forex.in.rs/pips-vs-bps/#abh_posts) [![Fxigor](https://www.forex.in.rs/wp-content/uploads/gravatar/imagefxigor.jpeg)](https://www.forex.in.rs/author/orfejs/ "Fxigor") [Fxigor](https://www.forex.in.rs/author/orfejs/) Trader at Leanta Capital Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the [Fxigor Youtube channel](https://www.youtube.com/@FXIGOR). To contact Igor write on: igor@forex.in.rs [![Fxigor](https://www.forex.in.rs/wp-content/uploads/gravatar/imagefxigor.jpeg)](https://www.forex.in.rs/author/orfejs/ "Fxigor") Latest posts by Fxigor ([see all](https://www.forex.in.rs/author/orfejs/)) - [Vantage Markets Forex Broker Review](https://www.forex.in.rs/vantage-broker-review/) - [Thor Young’s Trader Strategy: Unlocking the Power of Psychology and Pivot Points](https://www.forex.in.rs/thor-young-strategy/) - - [Akil Stokes Playbook & Strategy: How He Actually Trades](https://www.forex.in.rs/akil-stokes-strategy/) - Related posts: 1. [Cost Basis of Gifted Stock](https://www.forex.in.rs/cost-basis-of-gifted-stock/ "Cost Basis of Gifted Stock") 2. [How to Calculate Pips in NASDAQ? – Count Pips on NAS100](https://www.forex.in.rs/how-to-count-pips-on-nas100/ "How to Calculate Pips in NASDAQ? – Count Pips on NAS100") 3. [How to Calculate US30 Pips? – Count Pips on DOW](https://www.forex.in.rs/how-to-calculate-us30-pips/ "How to Calculate US30 Pips? – Count Pips on DOW") 4. [Difference Between Forex Demo and Real Account](https://www.forex.in.rs/difference-between-forex-demo-and-real-account/ "Difference Between Forex Demo and Real Account") 5. [How to Calculate Pips on Bitcoin? – BTCUSD Bitcoin Pips Calculator\!](https://www.forex.in.rs/how-to-calculate-pips-on-bitcoin/ "How to Calculate Pips on Bitcoin? – BTCUSD Bitcoin Pips Calculator!") 6. [How to Calculate Pips in MT4?](https://www.forex.in.rs/how-to-count-pips/ "How to Calculate Pips in MT4?") 7. [How Many Pips Does Gold Move in a Day?](https://www.forex.in.rs/how-many-pips-does-gold-move-in-a-day/ "How Many Pips Does Gold Move in a Day?") 8. [How to view Profit as Pips in MT4? – Display Profit as Pips\!](https://www.forex.in.rs/view-profit-as-pips/ "How to view Profit as Pips in MT4? – Display Profit as Pips!") 9. [CFD vs. ETF – Difference Between ETF and CFD\!](https://www.forex.in.rs/cfd-vs-etf-trading-index-etfs-or-cfds/ "CFD vs. ETF – Difference Between ETF and CFD!") 10. [What is the Difference Between Nasdaq and Nyse?](https://www.forex.in.rs/nasdaq-vs-nyse/ "What is the Difference Between Nasdaq and Nyse?") 11. [Difference Between Dow Jones S\&P 500 and Nasdaq](https://www.forex.in.rs/difference-between-dow-jones-sp-500-and-nasdaq/ "Difference Between Dow Jones S&P 500 and Nasdaq") 12. [The Price Difference Between MT4 and TradingView\!](https://www.forex.in.rs/price-mt4-and-tradingview/ "The Price Difference Between MT4 and TradingView!") [BEST BROKERS REVIEWS](https://www.forex.in.rs/go/best-brokers) [TRADINGVIEW PRO AD-FREE CHARTS](https://www.forex.in.rs/banner/tradingview-pro) [![fxigor website banner](https://www.forex.in.rs/wp-content/uploads/2024/01/fxigor-banner-300x250.jpg)](https://www.forex.in.rs/partner/get-expert-advisor) [Manage \$300 000 Account. Earn as trader\!](https://www.forex.in.rs/funded/elite-funded) [![](https://www.promtfinance.com/wp-content/uploads/2025/02/get-loan.png)](https://www.promtfinance.com/go/get-loan) [Fxigor](https://www.forex.in.rs/author/orfejs/) Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the [Fxigor Youtube channel](https://www.youtube.com/@FXIGOR). To contact Igor write on: igor@forex.in.rs [Trade gold and silver.](https://www.forex.in.rs/banner/hfmgoldsilver) Visit the broker's page and start trading high liquidity spot metals - the most traded instruments in the world. 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Readable Markdown	Pips, also known as price interest points, are one of the most fundamental terms in forex trading. Most forex traders have to deal with pips daily. A pip is a measurement unit representing the smallest change in a currency pair’s value. It is the fourth decimal place in a currency pair’s price. For instance, if the EUR/USD pair moves from 1.1234 to 1.1235, that represents a one-pip movement. ![how to calculate pip difference - pip value in currency price](https://www.forex.in.rs/wp-content/uploads/2020/02/pipvalue.jpg) Pips help traders determine the profit or loss that they have made on a trade. A pip’s value depends on the size of the lot traded, which is why some traders prefer to use a pip value calculator. Understanding pips is crucial in forex trading as it enables traders to analyze the market and determine when to enter or exit a trade. Additionally, traders can use pips to measure risk and reward ratios, which helps to minimize losses and optimize profits. As such, for anyone looking to be a successful forex trader, understanding the concept of pips is vital. However, we can see another expression, the basis point in terminology. When it comes to trading and finance, it is essential to understand the language and the different terminologies used to help you make informed decisions. For example, basis points and pip are commonly used in the financial industry. A basis point and a pip are measurement units used to express the movement in the value of a financial instrument, currency exchange rate, or interest rate. Understanding the difference between these terms can be crucial for traders, investors, and anyone involved in finance. ## What is the Difference Between a Basis Point and a Pip? In forex CFD trading, basis points and pips are equal values and represent percentage changes in the exchange rate. A basis point or pips are units of measurement equivalent to 1/100th of 1%, which means one basis point or pips equals 0.01%. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement. We should use the bps (base point) expression when discussing interest rates, bond yields, and other financial metrics. On the other side, pip expression is characteristic of forex trading and CFD trading, and we need to use it when we describe currency pairs’ price changes. ## What is a Basis Point? A basis point is a unit of measurement equivalent to 1/100th of 1%, which means one basis point equals 0.01%. It is a standardized way of measuring the changes in interest rates, bond yields, and other financial instruments. A basis point is widely used in the financial industry to simplify calculations and express tiny percentage changes. For example, if the interest rate moves from 2.50% to 2.60%, it has moved ten basis points or 0.10%. The term basis point is widely used to express the spread between different rates or the difference between bond yields. ## What is a Pip? A pip stands for “percentage in point,” a standardized measure of the movement in the exchange rates of currencies. As mentioned, one pip is the equivalent of 1/100th of 1% or one basis point. The slightest price movement is possible in a currency pair, representing the fourth decimal place for EURUSD or GBPUSD in the exchange rate. For instance, if the EUR/USD pair moves from 1.2000 to 1.2010, it has moved ten pips. A pip is widely used in Forex trading to quantify the profit or loss of a trade. To learn more, visit our article on [how to calculate pips.](https://www.forex.in.rs/how-to-count-pips/) ![How to calculate pips if you trade in lots in Metatrader](https://www.forex.in.rs/wp-content/uploads/2022/06/how-to-calculate-pips-if-you-trade-in-lots-scaled.jpg) ## Difference Between a Basis Point and Pip Basis Points (bps): - Equal to one-hundredth of one percentage point or 0.01% - Used to measure changes in interest rates, bond yields, and other financial metrics - Represents small percentage changes Pips: - It stands for “percentage in point.” - Used in currency trading to measure the slightest price change in a currency pair - Most currency pairs have one pip as the fourth decimal place - Some currency pairs may have different pip values (e.g., Japanese yen) - Represents the smallest price change in a currency pair Both basis points (bps) and pips are units of measurement used in finance and trading to denote changes in financial instruments’ value, such as currencies or bonds. However, the main difference between basis points and pips lies in their specific uses and the magnitude of the measurement. A basis point (bps) equals one-hundredth of one percentage point or 0.01%. For example, a change in interest rates from 3.00% to 3.25% represents an increase of 25 bps. Basis points are commonly used to measure changes in interest rates, bond yields, and other financial metrics where small percentage changes are significant. On the other hand, a pip stands for “percentage in point” and is a unit of measurement used in currency trading to measure the smallest price change in a currency pair. For most currency pairs, one pip represents the fourth decimal place, such as the change from 1.2000 to 1.2001. However, some currency pairs may have different pip values, such as the Japanese yen, which has a pip value of 0.01 due to its lower exchange rate than other major currencies. While both the pip and the basis point represent a percentage change, they are used to express different things. For example, a basis point measures the percentage change between two interest rates or bond yields, while a pip measures the percentage change in the exchange rate of two currencies. Another difference is in the way these two units are expressed. For example, a basis point is expressed in decimal points, while pips are expressed in fractional terms, typically including two decimal places. Furthermore, while a pip represents a slight price movement in the currency exchange rate, a basis point can mean a more significant move, typically used when dealing with expressed interest rates. For instance, a change in interest rates of 0.25% would represent 25 basis points. However, the equivalent in pips would depend on the currency pair being considered, as different currency pairs have varying pip values. ## Conclusion To sum up, the difference between a basis point and a pip lies in what they measure and how they are expressed. A basis point calculates the percentage change between two interest rates or bond yields. At the same time, a pip measures the percentage change in the exchange rate of two currencies addition; a basis point is expressed in decimal points, while a pip is expressed in fractional terms. Proper knowledge and understanding of these terms can help you make informed decisions when dealing with financial instruments and currency pairs as a trader or investor. - [About](https://www.forex.in.rs/pips-vs-bps/#abh_about) - [Latest Posts](https://www.forex.in.rs/pips-vs-bps/#abh_posts) [![Fxigor](https://www.forex.in.rs/wp-content/uploads/gravatar/imagefxigor.jpeg)](https://www.forex.in.rs/author/orfejs/ "Fxigor") Trader at Leanta Capital Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the [Fxigor Youtube channel](https://www.youtube.com/@FXIGOR). To contact Igor write on: igor@forex.in.rs [![Fxigor](https://www.forex.in.rs/wp-content/uploads/gravatar/imagefxigor.jpeg)](https://www.forex.in.rs/author/orfejs/ "Fxigor")
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