How to use the pip value calculator
- Select the currency pair you trade, including gold and silver.
- Enter the lot size. 1.00 is a standard lot, 0.10 a mini lot and 0.01 a micro lot.
- Pick your account currency. The pip value is shown in it.
- Check the exchange rate if the pair is not quoted in your account currency. The calculator fills in the latest European Central Bank rate, and you can replace it with your broker's rate.
The result is the value of one pip for your lot size, the value per standard, mini and micro lot, and a chart of the profit or loss for 10 to 200 pips. A second chart ranks the pip value of one standard lot across common pairs, with yours highlighted.
The pip value formula
pip value (quote currency) = pip size × contract size × lots
pip value (account currency) = pip value (quote currency) × quote-to-account rate
The pip size is the smallest price step traders count: 0.0001 for most pairs and 0.01 for pairs quoted in yen. The contract size is 100,000 units of the base currency for a standard lot. The result comes out in the pair's quote currency, because that is the currency the price is quoted in. If your account is in a different currency you convert it once, at the quote-to-account rate.
Worked example
On EUR/USD with a USD account, one standard lot is 100,000 euros and one pip is 0.0001, so a pip is worth 0.0001 × 100,000 = $10. The quote currency is the account currency, so no conversion is needed.
For one standard lot, a 50-pip move is $500 and a 100-pip move is $1,000. Now take USD/JPY. A pip is 0.01 and a standard lot is 100,000 dollars, so a pip is worth 1,000 yen. With the pair at 150 yen per dollar that is about $6.67. The same lot size, a different pair, a different pip value.
Why pip values differ between pairs
Three things change the figure:
- The quote currency. Pairs quoted in dollars are worth $10 per pip per lot, since the pip size and the contract are the same. Pairs quoted in another currency are worth 10 units of it per lot (1,000 for yen pairs), which converts to more or less than ten dollars.
- The pip size. Yen pairs use 0.01, which makes the pip value per lot 1,000 yen.
- The instrument. Gold has a contract of 100 ounces and a pip of 0.10, so a pip is worth $10 per lot, and silver with 5,000 ounces and a pip of 0.01 is worth $50 per lot. Brokers can define these differently.
Because the quote currency's exchange rate moves, the pip value of a cross pair such as EUR/GBP changes a little every day.
Using pip value to size and judge trades
Pip value connects a price distance to money. Multiply it by your stop loss in pips and you have the money at risk. Divide the money you are willing to risk by that figure and you have your lot size, which is what the forex lot size calculator does. Compare it with the position size calculator for stocks, coins and futures, where there are no pips and the stop distance is in price.
Read the pip and lot glossary entries if the terms are new to you.
Common pip value mistakes
- Assuming $10 for every pair. That holds only for dollar-quoted pairs on a standard lot.
- Ignoring the account currency. A euro account trading EUR/USD must convert dollars to euros.
- Mixing up pips and points. Some brokers quote a tenth of a pip, called a pipette or point. A 5-digit broker's last digit is not a pip.
- Using last month's rate. For cross pairs the conversion rate matters, so use a current one.
What the calculator does not know
The pip value uses a daily reference exchange rate and a standard pip size. Your broker's live rate, its contract size and its pip definition for metals and exotics may differ, so check the figure in your platform before you size a trade. The calculator is not investment advice.
Frequently asked questions
How much is one pip worth?
For one standard lot on a pair quoted in US dollars, one pip is $10. For a mini lot it is $1 and for a micro lot $0.10. On other pairs the value depends on the quote currency and the exchange rate.
How do I calculate pip value?
Multiply the pip size by the contract size and the number of lots, then convert from the pair's quote currency into your account currency. For EUR/USD, 0.0001 × 100,000 = $10 per standard lot.
Why is the pip value different on USD/JPY?
The pip on a yen pair is 0.01, and the pip value is paid in yen. On one standard lot it is 1,000 yen, which is worth about $6.67 when the dollar buys 150 yen.
What is a pip in forex?
A pip is the standard unit for counting price moves: 0.0001 for most pairs and 0.01 for pairs with the Japanese yen. If EUR/USD moves from 1.0850 to 1.0851, it has moved one pip.
How do I convert pips to money?
Multiply the number of pips by the pip value for your lot size. A 40-pip gain on 0.50 lots of EUR/USD is 40 × $5 = $200.
Is a pip the same as a point?
No. Many brokers quote prices to a fifth decimal place, and the last digit is a fraction of a pip. Ten of those points make one pip.
Does the account currency change the pip value?
Yes. The pip value is first calculated in the pair's quote currency and then converted into the currency your account is held in, at the current exchange rate.
How does the pip value help with risk?
It turns a stop loss in pips into an amount of money. A 30-pip stop on a position worth $5 a pip risks $150. Without the pip value you cannot know what a stop costs.