Pip Calculator

What is a Pip?

A pip (Percentage in Point) is the smallest price movement in a currency pair. For most pairs, a pip is 0.0001 (the fourth decimal place). For JPY pairs, a pip is 0.01 (the second decimal place).

How Pip Value is Calculated

• XXX/USD pairs — Pip value is always $10 per standard lot
• USD/XXX pairs — Pip value = (0.0001 × 100,000) / exchange rate
• Cross pairs — Convert pip value through the USD rate
• Gold (XAU/USD) — $1 per pip per standard lot (100 oz)

Why Pip Value Matters

Understanding pip value is essential for proper risk management. Before entering any trade, you should know exactly how much each pip movement costs in your account currency. This directly affects your lot size and stop loss placement.