In plain English
When EUR/USD is shown as 1.08503, the "0" in the fourth decimal place is the pip and the final "3" is three pipettes, or 0.3 pips.
Pipettes let brokers quote tighter, more precise prices. A spread shown as "12" on a five-digit platform usually means 12 pipettes, which is 1.2 pips, not 12 pips. Misreading this is a common beginner mistake.