Pip Value Calculator
Calculate the value of each pip for your forex trades
📊 Understanding Pip Value
A pip (percentage in point) is the smallest price movement in forex trading. The pip value tells you how much money you will make or lose for each pip movement in the currency pair you're trading.
The pip value depends on the currency pair, your lot size, and your account currency. Understanding pip value is crucial for proper Risk management and position sizing.
🔍 How Pip Value Is Calculated
The calculation involves several factors:
- Currency Pair: Different pairs have different pip values
- Lot Size: Larger lots = higher pip values
- Account Currency: Affects the final pip value
- Exchange Rate: Current price of the currency pair
❓ Frequently Asked Questions
What is a pip in forex trading?
A pip is the smallest price movement in forex, typically 0.0001 for most pairs (except JPY pairs where it's 0.01). It represents the fourth decimal place in most currency pairs.
How does lot size affect pip value?
Lot size directly affects pip value. A standard lot (100,000 units) has a much higher pip value than a mini lot (10,000 units) or micro lot (1,000 units).
Why is account currency important?
Your account currency determines how the pip value is displayed. If your account is in USD, pip values will be shown in USD. If it's in EUR, they'll be shown in EUR.
Do all currency pairs have the same pip value?
No, pip values vary by currency pair. Major pairs like EUR/USD typically have a pip value of $10 per standard lot, while exotic pairs may have different values.