Partner Federation Glossary — last updated September 2026
A pip (percentage in point) is the standard unit for measuring price movement in forex. For most currency pairs it’s the fourth decimal place (0.0001); for pairs involving the Japanese yen, it’s the second decimal place (0.01). A pipette is one-tenth of a pip, used by brokers that quote more precise fractional pricing.
Why It Matters for Partners
Pips are the unit behind spread share payouts: a program paying “0.5 pips per lot” is paying a partner a slice of the spread markup, measured in the same unit a trader sees on their platform. That’s distinct from a flat lot rebate or a percentage-of-revenue revenue share deal — spread share specifically tracks the spread itself. Understanding pip conventions also matters when comparing rate tables across brokers — a rate quoted in pips on a 5-decimal broker isn’t directly comparable to one quoted on a 4-decimal broker without accounting for pipettes.
Related Terms
Spread · Lot · Spread Share · Revenue Share