Pip Value Calculator

How pip value works

A pip is a standard price increment for a forex pair. Pip value tells you how much a one-pip move is worth for the position size you enter. The quote currency matters first because the raw pip value is calculated in the quote currency of the pair.

For most forex pairs, one pip is 0.0001. For pairs where JPY is the quote currency, one pip is 0.01. If your account currency is not the quote currency, the calculator uses the conversion rate you enter.

Example calculation

For EUR/USD, 1.00 standard lot is 100,000 EUR and USD is the quote currency. One pip is 0.0001.

Pip value in the quote currency = 100,000 x 0.0001 = 10 USD per pip.

If the account currency is EUR and EUR/USD is 1.0850, the USD pip value is converted by dividing: 10 / 1.0850 = 9.2166 EUR per pip.

How the calculation works

The calculator splits the currency pair into base and quote currencies, then sets pip size from the quote currency.

Position units = lot size x lot type units
Pip value in quote currency = position units x pip size

If the account currency equals the quote currency, no conversion is needed. If the conversion pair is quote/account, the calculator multiplies by the conversion rate. If the conversion pair is account/quote, it divides by the conversion rate.

Total value = pip value per pip x number of pips

How to use this in trade planning

Pip value matters because it turns price movement into money risk. Once you know the pip value, you can estimate how much a stop loss or target is worth before entering the trade.

Example: if your pip value is 10 USD and your stop loss is 25 pips, the trade risk is 250 USD before costs.

This is where a trading journal matters. The calculator gives you the value per pip. The journal shows whether your actual trade risk matched your plan.

Common questions

What is pip value?

Pip value is the money value of a one-pip move for your position size. It helps traders understand how much a price move changes the value of an open position.

What lot type should I use?

A standard lot is 100,000 units, a mini lot is 10,000 units and a micro lot is 1,000 units. Use the units option if you already know the exact position size.

What pip size does the calculator use?

The calculator uses 0.0001 for most forex pairs and 0.01 when JPY is the quote currency. Check your broker's instrument specification if the instrument uses a different convention.

Why is there a conversion rate field?

The raw pip value is in the quote currency. If your account currency is different, enter the conversion rate you want to use and choose whether that rate is quoted as quote/account or account/quote.

Where does the conversion rate come from?

By default, it uses the values you enter. You can optionally fill the conversion rate with a latest indicative FX reference rate. Uses latest indicative FX rates. Broker/platform prices may differ.

Is this trading advice?

No. This is an educational risk-planning calculator. It does not tell you what to trade, when to trade, or what risk level is right for you.

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