In forex, a “pip” stands for “percentage in point” and represents the smallest price change most currency pairs can make. For major pairs, one pip is usually equal to 0.0001. When traders talk about 200 pips, they mean a price movement of 0.0200 in a currency pair quoted to four decimal places. For example, if EUR/USD rises from 1.0800 to 1.1000, that’s a 200-pip increase.

The value of 200 pips depends on the lot size being traded. In a standard lot (100,000 units), one pip is worth $10, so 200 pips equal $2,000. For a mini lot (10,000 units), one pip equals $1, so 200 pips represent $200. With a micro lot (1,000 units), one pip equals $0.10, making 200 pips worth $20. This shows why lot size and position management are important.

Gaining or losing 200 pips can be significant, depending on leverage and account size. A skilled trader may aim for such a move during strong trends or major economic events. However, chasing large pip gains without proper risk control can be risky. Understanding pip value and how it translates into profit or loss helps traders set realistic goals, manage positions wisely, and better evaluate market opportunities.