In finance and trading, "pip" and "point" are two commonly used terms, often employed in the context of the foreign exchange (Forex) market and other financial markets. While they sound similar and are both associated with price movements, they have distinct meanings and are used in different ways.

1. Pip (Percentage in Point): A pip is a standardized unit of measurement for price movements in the Forex market. It represents the smallest incremental change in the price of a currency pair. Typically, a pip is equivalent to 0.0001 or 1/100th of a percentage point. For most currency pairs, this is the fourth decimal place in the exchange rate. For example, if the EUR/USD currency pair moves from 1.1200 to 1.1201, it has moved by one pip.

2. Point: A point is a more general term used in various financial markets, including stocks, futures, and indices. It represents the smallest price move in a given market. The value of a point can vary significantly from one market to another. For instance, in the context of the stock market, a point is often equivalent to one dollar. If a stock price increases from $50.00 to $51.00, it has moved up by one point.

To summarize, the key difference between a pip and a point lies in their specific definitions and the markets in which they are used. Pips are primarily associated with the Forex market and are standardized to represent small changes in currency pair prices. On the other hand, points are more versatile and can represent various price movements depending on the financial market. Traders and investors must be aware of the appropriate terminology and measurement for their specific trading instruments to make accurate calculations and informed decisions.