Pip Value Calculator
Learn how to calculate the value of a pip for any forex currency pair
What is a Pip in Forex?
A pip (percentage in point) is the smallest standardized price movement in forex trading. Understanding pip value is fundamental to managing risk and calculating potential profits or losses on your trades.
For most currency pairs, a pip represents a movement of 0.0001 (the fourth decimal place). For pairs involving the Japanese Yen (JPY), a pip is 0.01 (the second decimal place).
Pip Value by Currency Pair
The value of a pip depends on the currency pair, your position size, and your account currency. Here are standard pip values for a 1 standard lot (100,000 units):
| Currency Pair | Pip Value (Standard Lot) | Pip Value (Mini Lot) | Pip Value (Micro Lot) |
|---|---|---|---|
| EUR/USD | $10.00 | $1.00 | $0.10 |
| GBP/USD | $10.00 | $1.00 | $0.10 |
| USD/JPY | ~$9.09 | ~$0.91 | ~$0.09 |
| USD/CHF | ~$11.24 | ~$1.12 | ~$0.11 |
| AUD/USD | $10.00 | $1.00 | $0.10 |
How to Calculate Pip Value
The pip value formula depends on whether the USD is the base or quote currency:
For USD Quote Currency Pairs (EUR/USD, GBP/USD)
Pip Value = Position Size x 0.0001
Example: 100,000 units x 0.0001 = $10 per pip
For USD Base Currency Pairs (USD/JPY, USD/CHF)
Pip Value = (Position Size x 0.01) / Exchange Rate
Example (USD/JPY at 149.50): (100,000 x 0.01) / 149.50 = $6.69 per pip
Why Pip Value Matters
Understanding pip value is critical for:
Pip Value Examples
Example 1: EUR/USD Trade
You buy 0.5 lots (50,000 units) of EUR/USD. Price moves 30 pips in your favor.
Pip value for 0.5 lots = $5.00
Profit = 30 pips x $5.00 = $150
Example 2: USD/JPY Trade
You sell 1 standard lot of USD/JPY at 149.50. Price moves 25 pips in your favor.
Pip value ~ $6.69
Profit = 25 pips x $6.69 = $167.25
Frequently Asked Questions
What is a pip in forex trading?
A pip (percentage in point) is the smallest standard price movement in forex. For most currency pairs, a pip is 0.0001 (the fourth decimal place). For JPY pairs, a pip is 0.01 (the second decimal place).
How much is 1 pip worth in EUR/USD?
For EUR/USD, 1 pip equals $10 per standard lot (100,000 units), $1 per mini lot (10,000 units), and $0.10 per micro lot (1,000 units).
How do you calculate pip value?
Pip Value = (One Pip / Exchange Rate) x Position Size. For USD quote currency pairs like EUR/USD, the formula simplifies to: Pip Value = 0.0001 x Position Size.
Why is pip value important?
Knowing pip value helps you calculate potential profit/loss, set proper position sizes based on risk tolerance, and determine accurate stop loss and take profit levels.
Continue Learning
Risk Disclosure: Trading involves substantial risk of loss and is not suitable for all investors. This content is for educational purposes only and does not constitute financial advice.
Last updated: December 2025