Pipette
A pipette is one tenth of a pip: the fifth decimal on EUR/USD and the third on USD/JPY. It gives brokers finer price quotes.
Most brokers now quote prices with one more decimal than the pip. That last digit, often shown in smaller type on the platform, is the pipette, also called a fractional pip.
It changes nothing in your risk calculation, but it makes spreads more precise. A 0.8-pip spread could not be displayed without it.
Watch out for the classic beginner mistake of mixing up pips and pipettes. On MetaTrader, a stop set at “50 points” means 50 pipettes, which is only 5 pips. Always check which unit your platform uses before you type in a distance.
See also