The Pip Calculator tells you the monetary value of each pip movement in your trades. This is essential for proper position sizing and risk management.

What You'll Need

The currency pair you're trading
Your position size (in lots)
Your account currency (usually USD)

Step-by-Step Instructions

1Select Currency Pair

Choose the pair you're trading from the dropdown menu.

Common Pairs:
• EUR/USD (Euro vs US Dollar)
• GBP/USD (British Pound vs US Dollar)
• USD/JPY (US Dollar vs Japanese Yen)
• USD/CHF (US Dollar vs Swiss Franc)

2Enter Position Size

How many lots are you trading?

Lot Sizes:
• Standard Lot: 1.0 = 100,000 units
• Mini Lot: 0.1 = 10,000 units
• Micro Lot: 0.01 = 1,000 units

Most retail traders use mini or micro lots.

3Get Pip Value

The calculator instantly shows the pip value in your account currency.

Example Result:
Trading 0.1 lots of EUR/USD
Pip Value: $1.00

This means every pip movement = $1 profit or loss

Understanding Pip Values

Standard Pip Values (for 1 standard lot)

Currency Pair Type	Pip Value	Example
USD as quote currency	$10 per pip	EUR/USD, GBP/USD
USD as base currency	Varies with rate	USD/JPY, USD/CHF
Cross pairs (no USD)	Varies with rate	EUR/GBP, GBP/JPY

Lot Size Impact

Lot Size	Units	EUR/USD Pip Value
1.0 (Standard)	100,000	$10
0.1 (Mini)	10,000	$1
0.01 (Micro)	1,000	$0.10

Real Trading Examples

Example 1: EUR/USD Trade

Currency Pair: EUR/USD
Position Size: 0.5 lots (50,000 units)
Account Currency: USD

Result: $5 per pip

If price moves from 1.0850 → 1.0880 (30 pips):
Profit = 30 pips × $5 = $150

Example 2: USD/JPY Trade

Currency Pair: USD/JPY
Position Size: 0.2 lots (20,000 units)
Current Rate: 148.50
Account Currency: USD

Result: $1.35 per pip (calculated automatically)

If price moves from 148.50 → 148.80 (30 pips):
Profit = 30 pips × $1.35 = $40.50

Common Mistakes

❌ Mistake #1: Assuming All Pairs Have Same Pip Value

EUR/USD and USD/JPY have different pip values even with the same lot size. Always calculate!

❌ Mistake #2: Forgetting Lot Size Decimals

Entering 1 instead of 0.1 means 10× larger position and 10× larger pip value.

❌ Mistake #3: Not Updating for JPY Pairs

JPY pairs have pip values that change with the exchange rate. Recalculate regularly.

Why Pip Value Matters

💡 Risk Management: If you want to risk $100 with a 50-pip stop loss, you need a pip value of $2 ($100 ÷ 50 = $2). The calculator tells you what lot size achieves this.

💡 Profit Planning: Know your potential profit before entering. If pip value is $3 and you're targeting 40 pips, that's $120 profit.

💡 Position Sizing: Use pip value to calculate exact lot size for your risk tolerance. This prevents over-leveraging.

Pro Tips

💡 Tip #1: For USD pairs, standard lot pip value is roughly $10. Mini lot = $1, Micro lot = $0.10. This is your quick mental estimate.

💡 Tip #2: JPY pairs are quoted to 2 decimal places (not 4), so 1 pip = 0.01, not 0.0001.

💡 Tip #3: Calculate pip value BEFORE entering the trade, especially for exotic pairs where values vary significantly.

FAQ

Q: Do I need to calculate pip value every time I trade?

A: Yes, especially for pairs where USD isn't the quote currency. Rates change, so pip values change.

Q: What about 5-decimal brokers (pipettes)?

A: Most brokers quote 5 decimals (e.g., 1.08503). The 4th decimal is still the pip. The 5th is a fractional pip (pipette).

Q: How do I use this with the Position Size Calculator?

A: The Position Size Calculator already factors in pip value. But knowing it separately helps verify results and plan trades.

Q: What if my account currency isn't USD?

A: The calculator converts automatically. Select your account currency from the dropdown.

Open Pip Calculator →