A currency pip is the last digit in a forward rate quotation. Pips are often used to illustrate market changes in an exchange rate. For example, if the currency quote EUR-USD 1.3275 moves to EUR/USD 1.3300, there is a difference of 25 pips. In this example, it costs 25 pips, or 0.0025 dollars more to purchase one euro. Currency pips are used by traders in FX markets to calculate the P/L on their positions. They are also the unit of measurement of so-called ‘swap rates’, the differential between the spot rate and the forward rate. If spot GBP-USD trades at 1.3059 and the 90-day forward trades at 1.3000, then the 90-day GBP forward trades at a 59-pip (or forward points) discount.