Pip Calculator
Calculate pip value and position size instantly. Essential for proper risk management.
Calculator Settings
⚡ Results update automatically as you type
Results
Rate will be fetched for accurate calculations
Understanding Pip Values
What is a Pip?
A pip (percentage in point) is the smallest price movement in forex. For most pairs, it's 0.0001. For JPY pairs, it's 0.01.
Lot Sizes
Standard: 100,000 units
Mini: 10,000 units
Micro: 1,000 units
Why It Matters
Knowing your pip value helps you calculate risk accurately and set proper position sizes for each trade.
📐 Pip Value Formula
Pip Value = (Pip Size × Lot Size × Units per Lot) / Exchange Rate Pip Value = (0.0001 × 1 × 100,000) / 1.10 = $9.09 per pip
Frequently Asked Questions
What is a pip in forex trading?
A pip (Percentage in Point) is the smallest price movement in forex trading. For most currency pairs, a pip equals 0.0001 (the fourth decimal place). For JPY pairs, a pip is 0.01 (the second decimal place). Understanding pips is essential for calculating profits, losses, and risk in forex trading.
How do I calculate pip value in forex?
Pip value is calculated using the formula: Pip Value = (One Pip / Exchange Rate) × Lot Size. For USD quote pairs like EUR/USD, one standard lot (100,000 units) has a pip value of $10. Our free pip calculator automatically calculates pip value for any currency pair and lot size.
What's the difference between a pip and a pipette?
A pipette is 1/10th of a pip, representing the fifth decimal place (0.00001) for most pairs. While a pip for EUR/USD is 0.0001, a pipette is 0.00001. Many brokers now offer 5-decimal pricing which includes pipettes for more precise pricing.
Why is pip value different for each currency pair?
Pip value varies because it's denominated in the quote currency (the second currency in the pair). For USD quote pairs like EUR/USD, pip value in USD is consistent. For pairs like EUR/GBP, the pip value is in GBP and must be converted to your account currency using current exchange rates.
How do I use a pip calculator for risk management?
Multiply your pip value by your stop-loss distance in pips to calculate your risk per trade. For example: 20 pip stop-loss × $10 pip value = $200 risk. This helps you determine position size based on your maximum risk per trade (typically 1-2% of account balance).
What is the pip value for 1 standard lot?
For USD quote pairs (EUR/USD, GBP/USD), 1 standard lot (100,000 units) has a pip value of approximately $10. For mini lots (10,000 units), pip value is $1. For micro lots (1,000 units), pip value is $0.10. Pip values for non-USD pairs vary based on exchange rates.
How do I calculate pips for JPY pairs?
For Japanese Yen pairs (USD/JPY, EUR/JPY), pips are calculated differently because JPY is quoted to two decimal places instead of four. One pip equals 0.01 for JPY pairs. The pip value formula remains the same but uses 0.01 as the pip increment.
What is the pip value for gold (XAU/USD)?
For gold trading (XAU/USD), one pip typically equals $0.01 movement. With a standard lot of 100 ounces, the pip value is approximately $1 per pip. However, this can vary by broker, so always verify with your trading platform's contract specifications.
How many pips should my stop-loss be?
Stop-loss distance depends on your trading strategy, timeframe, and market volatility. Day traders often use 10-30 pip stops, while swing traders may use 50-150 pips. Use the ATR (Average True Range) indicator to set stops based on current market volatility rather than arbitrary pip values.
Can I use this pip calculator for MT4/MT5?
Yes, our pip calculator works with any trading platform including MetaTrader 4, MetaTrader 5, cTrader, and others. The pip values calculated are universal across platforms. Simply enter your currency pair and lot size to get accurate pip values for your trades.