A pip is the smallest price movement in a currency pair. If the EUR/USD moves up from 1.3435 to 1.3436, this movement is called 1 pip. Similarly, if the same quote moves down from 1.3435 to 1.3434, the movement is also called 1 pip. Whenever the U.S. dollar appears as a counter currency, 1 pip earns the trader USD10 for one standard lot