Pip: The standard unit of movement in a currency pair, typically the fourth decimal place (0.0001) for most Forex pairs, or the second decimal place for pairs involving the Japanese yen (0.01). Pips are commonly used to describe profit, loss, or spread.

Point: A smaller unit than a pip, often referred to as a fraction of a pip. For example, 1 pip = 10 points in most Forex pairs. Points allow traders to track very precise price movements.