Pipette A pipette is a fractional pip used to quote FX prices with more precision.
Many platforms quote FX pairs with an extra decimal place beyond the standard pip, called a pipette. This improves pricing granularity and helps represent tighter spreads. Related terms: Forex, Bid-Ask Spread, Spreads.
What it means
A pipette is a fractional pip used to quote FX prices with more precision.
Why it matters in live markets
In real markets, conditions like liquidity, volatility, and event risk can change quickly. That can affect quoted prices, spreads, and how orders fill. Understanding this term helps you interpret what you see on the platform and avoid incorrect assumptions when the market is moving fast.
Key points
- Focus on how the term affects price, cost, risk, or execution.
- Relationships can change across market regimes and sessions.
- Use the term to describe what you see, not to assume direction.
Example: A simple way to check your understanding is to apply the definition to a live quote, then ask how it affects cost, risk, or execution.
Related glossary terms
Where you will see it
You will usually encounter this concept in platform quotes, order tickets, trade history, and market commentary. If you are comparing conditions across instruments, check product specifications and note that behaviour can differ by market and session.