Pip Calculator

Calculate the value of a pip for different currency pairs and lot sizes.

Calculator
About
FAQ
User Guide

About Pip Calculator

The Pip Calculator helps traders determine the monetary value of a single pip movement for different currency pairs and trade sizes.

What is a Pip?

A pip (percentage in point) is the smallest price move that a given exchange rate can make based on market convention. For most currency pairs, a pip is 0.0001 (1/100th of 1%), but for JPY pairs it's 0.01.

Why Pip Value Matters

Understanding pip value is essential for:

  • Calculating potential profits and losses
  • Determining appropriate position sizes
  • Setting realistic profit targets and stop losses
  • Managing risk effectively

Frequently Asked Questions

What is the difference between a pip and a point?

A pip is typically the fourth decimal place in most currency pairs (0.0001), while a point (or pipette) is the fifth decimal place (0.00001). Some brokers quote to the fifth decimal place, making points important for precise calculations.

Why do JPY pairs have different pip values?

JPY pairs are quoted with only two decimal places (e.g., USD/JPY = 110.25), so a pip for JPY pairs is 0.01 instead of 0.0001. This affects how pip values are calculated for these pairs.

How does account currency affect pip value?

If your account is denominated in a currency different from the quote currency of the pair you're trading, the pip value needs to be converted to your account currency to accurately reflect your potential profit or loss.

User Guide

Step-by-Step Instructions

  1. Select Account Currency: Choose the currency of your trading account.
  2. Select Currency Pair: Choose the currency pair you're trading.
  3. Enter Position Size: Input the positions size of your trade.
  4. Calculate: Click calculate to see the pip value in your account currency.

Note: Pip values can change slightly as exchange rates fluctuate. For the most accurate calculations, use current market prices.