Pip is short for Percentage in Point. It is the smallest price movement in the forex market. Most forex pairs are priced to the four decimal place. Therefore, a pip is seen as the last decimal place of the price (4th decimal place).
1 pip = 0.0001
Basis Point (BPS) is commonly used in finance to refer to interest rates but a pip is equivalent to basis point
1 basis point = 0.01%
Forex currencies quoted in terms of pips.