The smallest amount each Currency pair can move is called a PIP (Percentage In Point). For most Currency pairs this movement is reflected in the fourth decimal point, 0.0001. The main exception to this are Currency pairs involving the Japanese Yen (JPY) which is quoted to two decimal points, thus a 1 PIP movement is 0.01. For example, if EUR/USD was to move from 1.3480 to 1.3495 or USD/JPY was to move from 88.50 to 88.65 both reflect 15 PIP movements.
When taking a Long position you make money when the value of the Currency pair rises. Conversely, when taking a Short position you make money when the value of the Currency pair falls. These rises and falls are measured in PIPs.
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