Pip Value Calculator
See how much one pip is worth in US dollars for any position size on major and cross currency pairs.
How pip value is calculated
A pip is the standard unit of price movement: 0.0001 on most pairs and 0.01 on pairs quoted in Japanese yen. Pip value is how much money one pip is worth for your position size, first in the quote currency (the second currency in the pair), then converted to US dollars.
Pip value = pip size × units traded × (USD value of 1 unit of the quote currency)
Three worked examples
- EUR/USD, 1 lot: 0.0001 × 100,000 = $10 per pip. When USD is the quote currency, the pip value is fixed.
- USD/JPY at 150, 1 lot: 0.01 × 100,000 = ¥1,000 per pip, which is $1,000 ÷ 150 = $6.67.
- EUR/GBP with GBP/USD at 1.27, 1 lot: 0.0001 × 100,000 = £10 per pip, which is $12.70.
Why pip value matters
Pip value turns a stop loss in pips into an amount of money. A 25-pip stop on 1 lot of EUR/USD risks $250; on 0.1 lots it risks $25. Knowing this before you trade is the basis of sensible risk management. To size a trade from the amount you want to risk, use the position size calculator.
Frequently asked questions
Why does pip value change on some pairs?
If the US dollar is not the quote currency, the pip value has to be converted into dollars, so it moves with the exchange rate.
What is a pipette?
Many platforms, including TradeLocker, show one extra decimal place. That fifth (or third, on JPY pairs) digit is a pipette, worth a tenth of a pip.
Related: how to calculate pip value, margin calculator, forex trading glossary. Trading leveraged products carries a high risk of loss. Read our risk disclosure.