What is a Pip in Forex? A Complete Guide for Georgia Traders (2026)

A pip is the fourth decimal place in most currency pairs, except for JPY pairs where it's the second decimal. For example, in EUR/USD, a move from 1.1050 to 1.1051 is one pip. In USD/JPY, a move from 110.00 to 110.01 is one pip. The value of one pip depends on your lot size and the currency pair. For a standard lot (100,000 units) of EUR/USD, one pip is worth $10. For a mini lot (10,000 units), it's $1. For a micro lot (1,000 units), it's $0.10. For Georgia traders, the most relevant example is USD pairs, as most local accounts are denominated in USD. If you trade GBP/USD with a mini lot and it moves 20 pips in your favor, you earn $20 (20 pips × $1 per pip). But if the trade goes against you by 20 pips, you lose $20. This is why risk management is critical: always know your stop-loss in pips. For example, if you set a 30-pip stop-loss on a mini lot, your maximum risk is $30. Many Georgian brokers offer fractional pip pricing (pipettes), which show five decimal places for more precise entries. This is helpful for scalping strategies popular among local traders. Remember, pips are universal, but your profit in USD depends on the broker's spread and commission. Always check the spread in pips before trading.

In Georgia, retail forex traders often fund accounts via Bank Transfer in GEL, Skrill, or USDT. While your account may show USD balances, the conversion from GEL to USD can slightly affect your pip value if the broker charges a conversion fee. For instance, if you deposit 1,000 GEL via Bank Transfer and the broker converts it at 2.70 GEL/USD, you get $370.37. A 10-pip gain on a mini lot would be $10, but after conversion back to GEL, it's 27 GEL—minus any fees. Skrill deposits are faster but may have higher fees. USDT deposits avoid bank conversion but carry crypto volatility risk. The local financial authority (National Bank of Georgia) requires licensed brokers to disclose all costs upfront, including spreads and pip values. Unregulated brokers may hide these costs, so always verify your broker's license on the NBG website. For Georgia traders, using a regulated broker ensures your pip calculations are transparent and your funds are protected.

• Always calculate pip value before entering a trade: use a pip calculator or the formula (1 pip / exchange rate) × lot size in USD. For Georgia traders, keep a simple spreadsheet with common lot sizes and pip values for EUR/USD and GBP/USD.
• When depositing via Bank Transfer in GEL, factor in the broker's conversion rate to USD. Even a 0.01 GEL difference can affect your pip value over many trades. Compare rates across brokers.
• Use Skrill or USDT for faster deposits, but check if the broker charges a fee for these methods. Some Georgian brokers offer zero-fee deposits for Skrill, which preserves your pip value.
• Set stop-losses in pips, not dollars. For example, if you risk 2% of a $500 account, that's $10. With a mini lot, a 10-pip stop-loss equals $10 risk. Adjust lot size accordingly.
• Avoid unregulated brokers that quote pips in confusing ways (e.g., 'fixed pip values' that change with leverage). Stick to NBG-regulated brokers for clear, consistent pip calculations.

Understanding pips is the foundation of successful forex trading for Georgia traders. By knowing how to calculate pip values in USD, setting stop-losses in pips, and choosing regulated brokers, you can manage risk effectively. Whether you deposit via Bank Transfer, Skrill, or USDT, always factor in conversion costs. Start with a demo account to practice pip calculations without real money. For more educational resources tailored to Georgia, explore our guides on comparebroker.io. Ready to trade? Compare regulated brokers today and trade with confidence.