What a pip is worth
A pip is the standard unit of price movement in forex: 0.0001 for most pairs and 0.01 for pairs quoted in Japanese yen. Its cash value depends on three things — the pip size, how many units you trade and the currency the pair is quoted in. Knowing it lets you translate a "30-pip stop" into dollars before you click buy.
How to use the calculator
Select the instrument and enter your position size in lots. When the pair is not quoted in US dollars, a conversion field appears: enter the current USD/JPY, USD/CHF, USD/CAD or GBP/USD rate so the value can be expressed in your USD account. For indices, enter the value of one point per lot at your broker. The panel shows the value of one pip at your size, the reference values for a standard, mini and micro lot, and what a 10-pip move means for your position.
The formula
pip value (quote currency) = pip size × units
pip value (USD) = quote value pair quoted in USD (EUR/USD)
= quote value ÷ USD/XXX USD is the base (USD/JPY, USD/CAD)
= quote value × GBP/USD pound-quoted crosses (EUR/GBP)
One standard lot is 100,000 units of the base currency.
Worked examples
- EUR/USD, 1 lot: 0.0001 × 100,000 = $10.00 per pip. At 0.25 lots it is $2.50.
- USD/JPY at 150.00, 1 lot: 0.01 × 100,000 = ¥1,000, and ¥1,000 ÷ 150 = $6.67.
- USD/CAD at 1.3800, 1 lot: C$10 ÷ 1.38 = $7.25.
- EUR/GBP with GBP/USD at 1.3300, 1 lot: £10 × 1.33 = $13.30.
- Gold (XAU/USD), 1 lot of 100 oz: a 0.1 move = $10.00.
Because conversion rates move, the dollar value of a yen or Canadian-dollar pip changes a little every day. Recalculate when rates have moved noticeably.
Common mistakes
- Assuming $10 everywhere. It is only $10 per standard lot on pairs quoted in dollars.
- Mixing pips and pipettes. Most platforms quote a fifth decimal, a pipette, worth a tenth of a pip. A move from 1.10000 to 1.10100 is 10 pips, not 100.
- Using the wrong contract size for indices and metals. One lot of US30 can be worth $1, $5 or $10 per point depending on the broker. Check the contract specification.
- Forgetting your account currency. This tool assumes a USD account; an account in euros or pounds needs one more conversion.
Once you know the pip value, the position size calculator turns it into a lot size for your risk.