Pip value calculator
How the pip calculator works
This pip calculator applies one formula. A pip is the standard unit of price change: 0.0001 for most currency pairs and 0.01 for pairs quoted in Japanese yen. Multiply the pip size by the number of units you are trading and you get the pip value in the quote currency. If that is not US dollars, divide or multiply by the relevant exchange rate to convert it.
Pip value (USD) = pip value in quote currency ÷ USD/quote rate, when the dollar is the base currency
Worked examples
USD-quoted pair. For EUR/USD, GBP/USD or AUD/USD the quote currency is already the dollar. One standard lot is 100,000 units, so 0.0001 × 100,000 = $10 per pip. For 0.4 lots it is $4.
Yen pair (illustrative rate). For USD/JPY at 150.00, one pip on one lot is 0.01 × 100,000 = 1,000 yen. Converted to dollars that is 1,000 ÷ 150 = about $6.67. As the rate changes, so does the dollar value of a pip.
Cross pair. For EUR/GBP the pip value comes out in pounds, so the calculator asks for the GBP/USD rate to convert it into dollars.
How to use the result
Pip value links price movement to money. Multiply it by the distance to your stop-loss to see what you stand to lose if the stop is hit, and by the distance to your target to see the potential gain. A 30-pip stop on one lot of EUR/USD represents $300 at risk before costs.
If that figure is more than you are prepared to lose, the answer is a smaller position, not a tighter stop placed where normal price noise will hit it. The position size calculator works backwards from your risk limit, and the margin calculator shows the deposit the trade will lock up. Learn the wider context in our guide to how forex trading works.