Pip Value Calculator

What Is Pip Value in Forex?

A pip (percentage in point) is the smallest standard price movement in a currency pair. Pip value tells you how much money each pip is worth in your account currency for a given lot size. Knowing your pip value is critical for calculating profit/loss and managing risk on every trade.

For most forex pairs, 1 pip = 0.0001 (the fourth decimal place). For JPY pairs, 1 pip = 0.01 (the second decimal place). For gold (XAUUSD), 1 pip = 0.01.

How to Calculate Pip Value

The pip value formula depends on the currency pair, lot size, and current exchange rate:

Example for EUR/USD with a standard lot:

1. Pip Size = 0.0001
2. Exchange Rate = 1.1050
3. Contract Size = 100,000 units
4. Pip Value = (0.0001 ÷ 1.1050) × 1 × 100,000 = $9.05

For USD-quoted pairs (where USD is the quote currency), the pip value is always $10 per standard lot, regardless of the exchange rate. This calculator handles all conversions automatically with live market data.

Pip Value Table — Quick Reference

Here's a pip value reference for common pairs at standard lot size (100,000 units). Values are approximate and fluctuate with the exchange rate for non-USD-quoted pairs:

Pip Value for Gold (XAUUSD)

Gold trading uses a different pip structure. For XAUUSD, 1 pip = 0.01 (a one-cent movement in the gold price). With a standard lot of 100 ounces:

• Standard lot (100 oz) → 1 pip = $1.00
• Mini lot (10 oz) → 1 pip = $0.10
• Micro lot (1 oz) → 1 pip = $0.01

Since gold is quoted in USD, the pip value in dollars is fixed and doesn't change with the exchange rate — making gold pip calculations simpler than cross currency pairs.

Pips vs Pipettes — What's the Difference?

Many brokers now show prices with an extra decimal place called a pipette (or fractional pip). A pipette is 1/10th of a pip:

• Most pairs: 1 pip = 0.0001, 1 pipette = 0.00001 (5th decimal)
• JPY pairs: 1 pip = 0.01, 1 pipette = 0.001 (3rd decimal)

Pipettes allow for tighter spreads and more precise pricing, but for position sizing and risk management, you'll still calculate in whole pips. 10 pipettes = 1 pip.

Why Pip Value Matters for Risk Management

Knowing your pip value is the foundation of proper forex risk management. Without it, you can't accurately calculate your lot size or know your exact dollar exposure per trade.

For example, if you risk 1% of a $10,000 account ($100) with a 20-pip stop loss, you need to know the pip value to determine how many lots to trade. Use this pip value calculator first, then plug the result into our lot size calculator for the complete picture.