EUR/USD pip value

What you earn or lose each time the price moves comes down to how big a lot you trade. A standard batch of currency units, traded all at 1 time, is what a lot means. You trade euros in batches because one euro on its own is too small to trade.

You enter your trade size in standard lots on most UK trading platforms. Enter 1 to mean a standard lot, 0.1 a mini lot and 0.01 a micro lot. Your dollar amount changes in direct proportion to the size of your trade. Per-pip value doubles when your trade size increases from 1 lot to 2 lots.

If you're unsure what trade size suits your balance, our lot size calculator offers a way to check before ordering.

One pip on EUR/USD means the exchange rate moved by 0.0001. The standard step for measuring how far 1 currency has shifted against another is called a pip.

Quotes from most UK brokers for EUR/USD go to 5 decimal places, and 1 pip shows as 0.00010. This last digit after the point is known as a fractional pip, or pipette. This amount is only part of one full pip and lets you see tighter spreads on your display.

Spot currency pairs always measure pip value in the quote currency shown after the slash. EUR/USD quotes in the US dollar, so moving 1 pip on 1 standard lot always comes to $10.

Your broker turns that dollar figure into sterling at the live exchange rate when your UK account is in pounds. IG's market sheet shows a $10 pip value as £7.47 on a contract of 100,000 euros. We added the exchange rate box to the calculator so that you can turn a dollar figure into pounds right away.

Your choice of spread betting vs CFD trading also affects how you size a trade. With a CFD, you choose how many lots to trade, and your dollar result converts into pounds. For a UK spread bet, you directly stake pounds for each point, without needing to convert currencies.

These sums need no manual work: your platform and our pip calculator take care of them. To check the figures yourself, multiply the contract size in euros by 0.0001, the pip size.

• **Dollar pip value: multiply the contract size in euros by pip size; formula: 0.0001 x contract size = USD pip value
• **Pound pip value: divide the dollar pip value by the GBP/USD rate, written as GBP pip value = USD pip value / GBP/USD rate

With 1 standard lot of 100,000 euros, multiply the contract size of 100,000 by 0.0001. The result is $10 per pip. Your sterling amount comes from dividing $10 by the pound to dollar rate. For example, IG's contract sheet shows £7.47.