What Is a Fractional Pip?

A fractional pip (also called a pipette) is one-tenth of a pip, providing more precise pricing in forex trading. It allows traders to see smaller price movements and make more accurate trading decisions.

For example, instead of quoting GBP/USD as 1.3184 / 1.3186, a fractional pip quote would be 1.31842 / 1.31862, where the last digit represents the fractional pip.

• 1 pip = 0.0001 (for most pairs)
• 1 fractional pip (pipette) = 0.00001

For a 100,000-unit GBP/USD trade, a pip is worth $10, and a fractional pip is worth $1.