How to Calculate Pip Values
Pip value determines your profit/loss. Here's how to calculate it for any pair and lot size.
What is a Pip?
Pip (Point in Percentage) = Smallest price move
- Most pairs: 0.0001 (4th decimal)
- JPY pairs: 0.01 (2nd decimal)
Examples:
- EUR/USD: 1.1000 → 1.1001 = 1 pip
- USD/JPY: 110.00 → 110.01 = 1 pip
Standard Pip Values
For Standard Lot (100,000 units)
USD as quote currency:
- EUR/USD, GBP/USD, AUD/USD: $10 per pip
- EUR/GBP: £10 per pip
USD as base currency:
- USD/JPY: ($100,000 × 0.01) ÷ current JPY price
- At 110.00: $100,000 × 0.01 ÷ 110 = $9.09 per pip
Cross pairs (no USD):
- Convert quote currency to USD
- EUR/GBP: Calculate in GBP, convert to USD
Calculation Formula
Standard Formula
Pip Value = (Pip Size × Lot Size) ÷ Exchange Rate
Example 1: EUR/USD
Lot: 1 standard (100,000) Pip: 0.0001 Rate: 1.1000
Pip value = (0.0001 × 100,000) ÷ 1 = 10 ÷ 1 = $10 per pip
Example 2: USD/JPY
Lot: 1 standard (100,000) Pip: 0.01 Rate: 110.00
Pip value = (0.01 × 100,000) ÷ 110 = 1,000 ÷ 110 = $9.09 per pip
Example 3: EUR/GBP
Lot: 1 standard (100,000 EUR) Pip: 0.0001 Rate: 0.8500 (GBP per EUR) GBP/USD: 1.2500
Step 1: Calculate in GBP = 0.0001 × 100,000 = £10
Step 2: Convert to USD = £10 × 1.2500 = $12.50 per pip
Pip Value by Lot Size
Standard Lot (100,000)
- EUR/USD: $10/pip
- GBP/USD: $10/pip
- USD/JPY: ~$9/pip
Mini Lot (10,000)
- EUR/USD: $1/pip
- GBP/USD: $1/pip
- USD/JPY: ~$0.90/pip
Micro Lot (1,000)
- EUR/USD: $0.10/pip
- GBP/USD: $0.10/pip
- USD/JPY: ~$0.09/pip
Quick Reference Table
| Pair Type | Standard Lot | Mini Lot | Micro Lot |
|---|---|---|---|
| EUR/USD | $10 | $1 | $0.10 |
| GBP/USD | $10 | $1 | $0.10 |
| USD/JPY | ~$9 | ~$0.90 | ~$0.09 |
| AUD/USD | $10 | $1 | $0.10 |
| USD/CAD | ~$7.50 | ~$0.75 | ~$0.08 |
| EUR/GBP | ~$12 | ~$1.20 | ~$0.12 |
Using Pip Value in Trading
Calculate Position Size
Want to risk $50 on 25-pip stop:
- Pip value needed: $50 ÷ 25 = $2 per pip
- Position: 2 mini lots (0.2 standard)
Calculate Profit Target
Position: 1 standard lot EUR/USD Target: 50 pips Pip value: $10
Profit = 50 × $10 = $500
Broker Calculators
Most brokers provide pip value calculators. Always verify your calculations before trading.
Use our Pip Calculator for instant results.
Remember: Know your pip value before entering any trade!
