A pip, short for point in percentage, is a very small measure of change in a currency pair in the forex market.
It can be measured in terms of the quote or in terms of the underlying currency.
A pip is a standardized unit and is the smallest amount by which a currency quote can change.
It is usually $0.0001 for U.S.-dollar related currency pairs, which is more commonly referred to as 1/100th of 1%, or one basis point.
This standardized size helps to protect investors from huge losses.
For example, trading the US30 with 1 EUR/pip, means if you're LONG from 28000 and price moves up 5 pips, you make 5 EUR
If trading the US30 with 0.2 EUR/pip means.. if you're LONG from 28000 and price moves up 5 pips, you make (5*0.2) = 1 EUR