Pip Value Calculator
A pip is the smallest standard price increment on a currency pair. What it’s worth in money depends on your position size and the pair — this works it out, and shows how.
One pip is worth
$10.00
Show the arithmetic
One pip on EUR/USD = 0.0001 (quoted to 4 decimal places)
0.0001 × 100,000 units × 1 lots = 10 USD
No conversion needed — USD is your account currency.
What a pip actually is
On most pairs a pip is the fourth decimal place — 0.0001. On pairs quoted against the Japanese yen it is the second decimal place, 0.01, because those pairs are quoted differently. Gold is quoted to two decimals as well. Getting that wrong is a common and expensive mistake: treating a yen pair like a four-decimal pair understates your risk by a factor of a hundred.
Why pip value changes with your account currency
Pip value is naturally denominated in the pair’s quote currency — the second one. One pip on one standard lot of EUR/USD is ten US dollars, always. If your account is in dollars, that is your answer. If it is in pounds, that ten dollars has to be converted, and the conversion moves with the market.
We ask you for that rate rather than fetching one. A stale rate gives you a number that looks authoritative and is wrong, and pip value feeds straight into position sizing— so an error here propagates into how much money you actually put at risk.
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