A pip is the standard unit used to measure a forex price movement. For most currency pairs, one pip equals 0.0001; for many yen pairs, it equals 0.01. On XAUUSD, broker specifications vary, so traders should confirm the contract size and quote format before calculating pip value or risk.
Pip means percentage in point. It gives traders a consistent way to describe price distance, calculate profit or loss, and set stops and targets. A move in EURUSD from 1.1000 to 1.1001 is one pip. Gold is quoted differently across brokers, so XAUUSD pip value must be checked against the broker's contract specification rather than assumed from a currency-pair formula.
Risk note: Do not size a gold trade until you have confirmed your broker's XAUUSD contract size.