What Is Pip Value?
Pip value is how much one pip price move in a currency pair is worth in cash. I think you can't trade like a pro without nailing this.
No matter if you're on EUR/USD, GBP/JPY, or any other pair, pip value tells you exactly what you'll make or lose on every 1-pip shift. It hits your position size and risk control right in the gut.
Key thing in forex: same pip move = wildly different dollars based on the pair, lot size, and your account currency. Without this, trading '1 lot' across pairs could risk totally uneven amounts - I've seen it wipe people out.
This calculator helps traders everywhere calculate the exact pip value for any pair, account currency, and lot size.
How This Calculator Works
It takes three simple inputs:
Step 1: Choose Your Currency Pair Pick the pair (EUR/USD, GBP/JPY, AUD/CAD, etc.). It grabs the current exchange rate.
Step 2: Set Your Lot Size Select position size:
- Standard Lot: 100,000 units
- Mini Lot: 10,000 units
- Micro Lot: 1,000 units
- Custom Size: Whatever you need
Step 3: Pick Account Currency Say what your account is in: USD, EUR, GBP, JPY, or other.
The Math Behind It
- Base pip value: (0.0001 / exchange rate) * lot size [standard pairs]
- JPY tweak: (0.01 / exchange rate) * lot size [yen pairs]
- Currency swap: Convert to your account money
Instant Results Get values for 1 pip, 10 pips, 50 pips, 100 pips right away.
Why Pip Value Matters So Much
1. Getting Position Sizes Right Without pip value, sizing is guesswork. Your '1% risk' could be 0.5% on one pair but 3% on another - that's how losses snowball.
2. Even Dollar Risk Across Pairs Pros risk the same dollar amount on every pair, not the same lot. EUR/USD might be $9.13/pip, but USD/JPY is $6.68/pip.
3. Turning Stop-Loss into Dollars You spot a 50-pip level on the chart. Convert it: 50 pips * $9.13/pip = $456.50 at risk.
4. Portfolio Risk Control Trading 3-5 pairs at once? Total risk: Position 1 = $182.60, Position 2 = $100.20, Position 3 = $162.60. Total: $445.40.
5. Quick Decisions On fast days, size up instantly from stop distance and risk target.
Calculating Pip Value for Different Pair Types
Standard Currency Pairs (0.0001)
Pairs: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/CAD
Formula: (0.0001 / exchange rate) * lot size
Example - EUR/USD at 1.0950:
- (0.0001 / 1.0950) * 100,000 = $9.13/pip
- 10 pips = $91.30
- 50 pips = $456.50
- 100 pips = $913.00
Yen Pairs (0.01)
Pairs: USD/JPY, EUR/JPY, GBP/JPY, AUD/JPY, CAD/JPY
Formula: (0.01 / exchange rate) * lot size
Example - USD/JPY at 149.80:
- (0.01 / 149.80) * 100,000 = $6.68/pip
- 10 pips = $66.80
- 50 pips = $334.00
- 100 pips = $668.00
Lot Size Impact
Standard Lot: $9.13/pip Mini Lot: $0.913/pip Micro Lot: $0.0913/pip
Real-Life Examples
Example 1: Conservative Swing Trader
Sarah has $10,000 and sticks to 2% risk max.
EUR/USD: Entry 1.0900, Stop 1.0850 (50 pips), Target 1.1000
Calc: (0.0001 / 1.0900) * 100,000 = $9.17/pip 50 pips * $9.17 = $458.50 (over her $200 limit) Adjust to 25 pips: 25 * $9.17 = $229.25
She trades 1.0 standard lot, stop at 1.0875 Result: Climbs to 1.0950, hits target. Profit: $229 (2:1 reward:risk).
Example 2: JPY vs CAD Pair
John wants $100 even risk on USD/JPY and USD/CAD (50-pip stops).
USD/JPY: $6.68/pip - $100 / (50 * $6.68) = 3 mini lots USD/CAD: $7.32/pip - $100 / (50 * $7.32) = 2.7 mini lots
Without pip value, same 3 mini lots each: USD/JPY: 0.3 * $6.68 * 50 = $100.20 ✓ USD/CAD: 0.3 * $7.32 * 50 = $109.80 ✗ (9.8% over-risk)
Over 20 trades: $196 extra losses.
Example 3: Beginner with Micro Lots
Mike has $500, max 1% risk.
AUD/USD at 0.6850: (0.0001 / 0.6850) * 1,000 = $0.146/pip 50-pip stop = $7.30 (over 1%)
Adjust to 35 pips = $5.11 (OK)
Result: Stop hit, loss $5.11. Over 20 trades at 55% wins: +$37.83 (7.6% return).
Example 4: Portfolio Heat
Emily ($100,000) risks $500 per trade across 4 pairs:
- EUR/USD: 35 pips * $9.13 = $319.55
- GBP/USD: 60 pips * $7.84 = $470.40
- USD/JPY: 75 pips * $6.68 = $501.00
- AUD/USD: 35 pips * $14.59 = $510.65
Total heat: $1,801.60 (1.8% of account) - under control.
Common Mistakes
Mistake 1: Same Lot Size Everywhere
Trading 1 standard lot on all pairs:
- EUR/USD: $456.50 risk on 50 pips
- GBP/USD: $392.00 risk on 50 pips
- AUD/USD: $729.50 risk on 50 pips
AUD/USD is 1.6x riskier. Fix: Calc pip value per pair.
Mistake 2: Decimal Error for JPY
Wrong: (0.0001 / 149.80) * 100,000 = $0.668/pip (10x too low!) Right: (0.01 / 149.80) * 100,000 = $6.68/pip
Result: 10-pip stop planned $6.68, actual $66.80.
Fix: JPY = 0.01, others = 0.0001.
Mistake 3: Currency Conversion
Pip value EUR/USD: $9.13 for USD account But EUR account: €8.34/pip (big difference!)
EUR/USD moves 1.0950 to 1.1050: USD: Still $9.13/pip EUR: Now $9.13 / 1.1050 = €8.26/pip
Fix: Always convert to your account currency.
Mistake 4: Ignoring Spread
Planned '50-pip stop = $456.50', but entry with 2-pip spread: Actual: 52 pips = $474.76 (way more!)
60 trades/month at 2-pip spread = $1,095.60 (11% of $10k).
Fix: Add spread to stop distance. Use ECN brokers.
Advanced Techniques
Sizing by ATR
Stop = 2 * ATR(14). Tight stops on calm days, wider on volatile ones.
Portfolio Heat
Total risk = (stop pips * pip value) per trade. Keep under 3% account.
Correlation Adjustment
EUR/USD and GBP/USD move together (0.85 corr). Shrink sizes on correlated pairs.
News Integration
Cut position size before big news, scale proportionally.
Profit Scaling
First target 20 pips = $182.60, second 40 = $365.20, third 60 = $547.80.
Pip Value for Major Pairs
| Pair | Rate | Pip Size | Value (1 Lot) | 50 Pips | 100 Pips |
|---|---|---|---|---|---|
| EUR/USD | 1.0950 | 0.0001 | $9.13 | $456.50 | $913.00 |
| GBP/USD | 1.2750 | 0.0001 | $7.84 | $392.00 | $784.00 |
| AUD/USD | 0.6850 | 0.0001 | $14.59 | $729.50 | $1,459.00 |
| NZD/USD | 0.5950 | 0.0001 | $16.81 | $840.50 | $1,681.00 |
| USD/CAD | 1.3650 | 0.0001 | $7.32 | $366.00 | $732.00 |
| USD/JPY | 149.80 | 0.01 | $6.68 | $334.00 | $668.00 |
| EUR/JPY | 161.50 | 0.01 | $6.19 | $309.50 | $619.00 |
| GBP/JPY | 191.20 | 0.01 | $5.23 | $261.50 | $523.00 |
Frequently Asked Questions
Q: What is a pip?
A: Smallest price move. Most pairs: 0.0001. JPY pairs: 0.01.
Q: Why 0.01 for JPY?
A: Yen trades in big volumes. 0.01 gives the precision needed.
Q: Does leverage affect pip value?
A: No. Leverage changes margin, not pip value.
Q: Manual calc?
A: Standard: (0.0001 / rate) * lot. JPY: (0.01 / rate) * lot.
Q: Same lot size for all pairs?
A: No. Adjust for equal dollar risk.
Q: When to recalc?
A: Every trade, rates change.
Q: Factor in spread?
A: Yes. Add typical spread to stop distance.
Q: Multi-currency accounts?
A: Convert: [pip value] / [account rate] = [account value].
Q: Use for open positions?
A: Yes. Calc unrealized P&L and plan exits.
Q: 5-digit brokers?
A: Use their quotes. Concept is the same.
Q: Link to risk management?
A: Pip value lets you size from % risk.
Q: Quick estimate?
A: Standard ~ 10 / rate. JPY ~ 100 / rate (approx).
Q: Pip vs pipette?
A: Pip = 0.0001 (4th decimal). Pipette = 0.00001 (5th).
Q: Exotic pairs?
A: Same formula. Buffer for wide spreads in risk.
Q: Portfolio heat?
A: Total risk = sum of all position risks. Keep under 3% account.
Related Calculators
Position Size Calculator - Turns pip value and stop into exact lot size for your risk goal.
Profit/Loss Calculator - Figures exact profit/loss from entry, exit, position size.
Risk/Reward Calculator - Sets risk:reward ratio using pip value.