Pipette

A pipette is one-tenth of a pip — the fifth decimal place for most pairs (0.00001) or the third decimal for JPY pairs (0.001). Many modern brokers quote prices to this extra level of precision, sometimes called "fractional pip pricing" or "5-digit pricing."

The practical impact is more precise pricing and tighter effective spreads. A broker showing EUR/USD at 1.08456 / 1.08462 has a spread of 0.6 pips (6 pipettes). Without pipette pricing, this might round to a 1-pip spread. For high-frequency traders and scalpers, this precision matters because tighter spreads directly reduce trading costs.

For most retail traders, pipettes don't change how you trade. Your stop losses and take profits in pips still work the same way. The extra decimal just gives you a slightly more accurate picture of where price is and what your broker is charging. If you're hand-calculating pip values, pipettes add a minor layer of math — but most platforms handle this automatically.