Pip Value Calculator

How Pip Values Work

A pip (percentage in point) is the smallest standard price movement in a currency pair. For most pairs, a pip is 0.0001 (the fourth decimal place). For JPY pairs, a pip is 0.01 (the second decimal place).

The pip value depends on three factors:

• The currency pair — which currency the pip is denominated in
• The lot size — standard (100,000 units), mini (10,000), or micro (1,000)
• Your account currency — the pip value needs to be converted if it differs from your account currency

Standard Formula

For pairs where USD is the quote currency (EUR/USD, GBP/USD, etc.):

Pip Value = Pip Size × Lot Size × Contract Size

For a standard lot of EUR/USD: 0.0001 × 1 × 100,000 = $10 per pip.

For pairs where USD is the base currency (USD/JPY, USD/CAD, etc.), you also divide by the current exchange rate to convert to USD.

Frequently Asked Questions

What is a pip in forex?

A pip is the smallest standard unit of price change in a currency pair. For EUR/USD, moving from 1.1050 to 1.1051 is one pip. It's the basic building block for measuring profit, loss, and spread.

Why does pip value change between pairs?

Because the value of a pip depends on the quote currency and its exchange rate against your account currency. A pip of USD/JPY is denominated in JPY, so its USD value fluctuates with the exchange rate.

Is pip value the same for all lot sizes?

No. A standard lot (100,000 units) has a pip value 10x larger than a mini lot (10,000 units) and 100x larger than a micro lot (1,000 units).

How does account currency affect pip value?

If your account is in EUR but you're trading a pair quoted in USD, the pip value in USD needs to be converted to EUR at the current EUR/USD rate.