Forex Pip Calculator

Pip value is the monetary worth of a one-pip move in a currency pair. Knowing your pip value before entering a trade is essential for calculating risk, setting stop-losses, and sizing positions correctly.

Definition: A pip (percentage in point) is the smallest standard price move in a currency pair. For most pairs it is the 4th decimal place (0.0001). For JPY pairs it is the 2nd decimal place (0.01).

Pip value formula (quote currency = USD): Pip Value = (0.0001 ÷ Exchange Rate) × Lot Size

For JPY pairs: Pip Value = (0.01 ÷ Exchange Rate) × Lot Size

For pairs where USD is the base (e.g. USD/CHF): Pip Value = 0.0001 × Lot Size ÷ Current Rate

What each variable means:

• Exchange Rate — the current market price of the pair (quote currency per base currency)
• Lot Size — the number of units traded:
  • Standard lot: 100,000 units
  • Mini lot: 10,000 units
  • Micro lot: 1,000 units
  • Nano lot: 100 units
• 0.0001 — the pip size for non-JPY pairs
• 0.01 — the pip size for JPY pairs

Position size formula (risk-based): Lots = (Account Risk in $) ÷ (Stop Loss in pips × Pip Value per lot)

Reference: standard pip values (1 standard lot)

• EUR/USD: $10.00 per pip
• GBP/USD: $10.00 per pip
• USD/JPY: ~$9.30 per pip (varies with rate)
• USD/CHF: ~$10.50 per pip (varies)
• AUD/USD: $10.00 per pip

Worked example: Account: $10,000. Risk 1% per trade = $100 risk. Pair: EUR/USD at 1.0850. Stop loss: 30 pips.

Pip value (standard lot) = 0.0001 ÷ 1.0850 × 100,000 = $9.22/pip

Position size = $100 ÷ (30 pips × $9.22) = $100 ÷ $276.60 = 0.36 lots (36,000 units)

If the trade moves against you 30 pips, you lose $100 — exactly 1% of your account, protecting your capital while keeping a meaningful position in the market.