Pip (Percentage in point) is the smallest commonly quoted change of an exchange rate of a currency pair.
The major currencies are conventionally priced to four decimal places. The exception to this is Japanese Yen pairs, which are conventionally priced to just two decimal places. For these currencies, a pip is one unit of the fourth decimal point. For the Japanese yen, a pip refers to one unit in the second decimal point.
To bring greater price transparency, our FX quotes include an additional decimal point, therefore; all JPY pairs are quoted to 3 decimals and all other pairs to 5 decimals. The additional decimal point represents a fraction of a pip: