Pip calculator

A tiny unit called a pip measures upward or downward movement in an exchange rate. If a currency pair has 5 decimal places, a 0.00010 movement equals 1 pip. If GBP/USD rises from 1.51542 to 1.51552, the 0.00010 increase equals 1 pip.

Currency pairs with the Japanese yen have 3 decimal places instead of 5. Such pairs use 3 decimal places, and their 1 pip value is 0.010. If a pair has 2 decimal places, 1 pip measures 0.10.

The pair's right-hand currency is the quote currency, where the cash value of 1 pip first appears. With EUR/USD, your first measurement is in US dollars. With EUR/GBP, you value each pip in pounds.

A lot is a fixed group of currency units that you buy or sell together. You don't trade 1 unit alone because a single currency unit moves in tiny fractions. Your lot size is measured in the base currency, which appears on the left side of the pair.

Brokers offer standard, mini, micro and nano lot sizes, so you can control your risk. Lot values entered on your order ticket include 1.0, 0.1, 0.01 or 0.001. Each ticket number represents a full group of currency units that your trade controls: 100,000, 10,000, 1,000 or 100.

Pip value scales with trade size: a 2 lot trade makes each pip worth 2 times what it is worth on a 1 lot trade. You can also use the trade sizing tool to set a trade size from your stop loss.

For cross pairs quoted in pounds, such as EUR/GBP, a 1 pip move is worth 10 GBP on 1 standard lot. The value is 1 GBP on 0.1 lots and 0.10 GBP on 0.01 lots. Our EUR/USD pip value guide explains dollar pairs in greater detail.

In quote currency, multiply the pip size by the currency units to get the pip value.

Quote-currency pip value = pip size × currency units

You don't need to convert the result if your account uses that same currency. If your account uses another currency, divide the quote currency's pip value by the exchange rate for those 2 currencies.

Quote currency pip value ÷ exchange rate = account currency pip value

Consider a purchase of 100,000 units on EUR/USD at 1.0850, where the amount equals 1 standard lot. With a pip size of 0.00010, each pip is worth $10 in the quote currency. If the rate rises by 10 pips to 1.0860, you gain $100. During that same 10 pip move, each pip on 1 mini lot of 10,000 units is worth $1, giving you a gain of $10.

For a yen example, picture a USD account trading GBP/JPY at 189.00 with 100,000 units in 1 standard lot. A yen pip of 0.010 gives 1000 JPY for 1 standard lot and 100 JPY for 0.1 lots. When you convert at 189.00 into US dollars, 1 pip on 1 standard lot is worth about $9.30 in your account. Find out how much deposit the trade requires with our margin calculator.