What Is the Difference Between a Pip and a Point?

A pip is the last digit in a 4-digit price quote. A point is the last digit in the 5-digit quote. One pip equals 10 points. A point shows the smallest possible change in the price. For example, in the EUR/USD currency pair, 1 point equals 0.00001. This means that a 1-pip change is equal to 0.00010. So, if the EUR/USD price moves by 1 pip, it has moved by 10 points.