What is pips?

The most common increment of currencies is the Pip. If the EUR/USD moves from 1.2250 to 1.2251, that is ONE PIP. A pip is the last decimal place of a quotation. The Pip is how you measure your profit or loss.
As each currency has its own value, it is necessary to calculate the value of a pip for that particular currency. In currencies where the US Dollar is quoted first, the calculation would be as follows.
Let’s take USD/JPY rate at 119.80 (notice this currency pair only goes to two decimal places, most of the other currencies have four decimal places)
In the case of USD/JPY, 1 pip would be .01
Therefore,
USD/JPY:
119.80
.01 divided by exchange rate = pip value
.01 / 119.80 = 0.0000834
This looks like a very long number but later we will discuss lot size.
USD/CHF:
            1.5250
            .0001 divided by exchange rate = pip value
            .0001 / 1.5250 = 0.0000655
USD/CAD:
            1.4890
            .0001 divided by exchange rate = pip value
            .0001 / 1.4890 = 0.00006715
In the case where the US Dollar is not quoted first and we want to get the US Dollar value, we have to add one more step.
EUR/USD:
            1.2200
            .0001 divided by exchange rate = pip value
so
            .0001 / 1.2200 = EUR 0.00008196
but we need to get back to US dollars so we add another calculation which is
            EUR x Exchange rate
So
            0.00008196 x 1.2200 = 0.00009999
When rounded up it would be 0.0001