Pip Value Calculator

Forex pip value calculates the monetary value of a single pip move — the minimum price movement in a currency pair — which determines your risk per trade and position sizing for proper money management.

What is a pip? A pip (percentage in point) is the smallest standardized price movement in forex:

• Most pairs: 0.0001 (4th decimal place) — e.g., EUR/USD moves from 1.1050 to 1.1051
• JPY pairs: 0.01 (2nd decimal place) — e.g., USD/JPY moves from 150.00 to 150.01
• A pipette (fractional pip) = 0.00001 (5th decimal) used by some brokers

Pip value formulas:

For pairs where USD is the quote currency (e.g., EUR/USD, GBP/USD): Pip Value = (Pip in decimal × Lot Size) in USD Standard lot (100,000 units): $10 per pip Mini lot (10,000 units): $1 per pip Micro lot (1,000 units): $0.10 per pip

For pairs where USD is the base currency (e.g., USD/JPY): Pip Value = (Pip in decimal × Lot Size) ÷ Current Exchange Rate USD/JPY at 150.00, standard lot: (0.01 × 100,000) ÷ 150 = $6.67 per pip

For cross pairs (neither currency is USD): Pip Value = (Pip in decimal × Lot Size) × (Quote Currency/USD rate)

Worked example — EUR/USD: You trade 2 standard lots (200,000 units). EUR/USD rises 45 pips. Profit = 45 × $10 × 2 = $900

Risk management application: Account size $10,000 | Risk per trade 1% = $100 | Stop loss 50 pips Position size = $100 ÷ (50 × $10/pip) = 0.2 lots (2 mini lots)

Always calculate pip value and position size before placing a trade to maintain consistent risk per trade — the foundation of professional forex money management.