Point and pip are terms used to describe price changes in the trading market. While traders may use these two terms in a similar way, each is unique in the degree of change it signifies and how it is used in the trading market.
For convenience, we use a point in the value of the minimum price change.
For example:
In 3-digit quotes, a movement of 1 point on the AUDJPY currency pair would be from 95.209 to 95.210.
In 4-digit quotes, a movement of 1 point on the EURUSD currency pair would be from 1.1608 to 1.1609.
In 5-digit quotes, a movement of 1 point on the AUDCAD currency pair would be from 0.90038 to 0.90037.