Forex Pip Value Calculator 🧮

Knowing the value of each pip is essential for proper risk management and position sizing. Use our Pip Value Calculator to instantly determine the monetary value of one pip for any currency pair, lot size, and account currency.

How to Use the Pip Value Calculator

1. Select Currency Pair – Choose the forex pair you want to trade (e.g. EUR/USD, GBP/JPY).
2. Enter Lot Size – Input the number of lots or units for the trade.
3. Set Account Currency – Select the currency your account is denominated in.
4. Click Calculate – The tool will display the pip value in your account currency.

💡 Tip: Pip value varies depending on the currency pair and account currency. It’s crucial for setting correct position sizes and stop losses.

Why Pip Value Matters in Trading

Pip value tells you how much profit or loss each pip movement will generate in your account currency. Without knowing pip value, it’s almost impossible to set precise stop losses or calculate correct position sizes.

For example, 1 pip on EUR/USD with a 1 lot position usually equals $10. But for pairs like GBP/JPY or exotic currencies, the value can be different.

Example Calculation

Suppose you trade 0.5 lots of EUR/USD and your account currency is USD. ➡️ Pip value ≈ $5 per pip. This means a 20 pip move equals $100 in profit or loss.

Related Forex Tools

• Position Size Calculator
• Risk Reward Calculator
• Margin Calculator
• Profit Calculator

Frequently Asked Questions (FAQ)

What is a pip?

A pip (percentage in point) is the smallest price movement in the forex market. For most currency pairs, 1 pip = 0.0001.

Does pip value change?

Yes. Pip value depends on the currency pair, lot size, and account currency. It can vary especially for non-USD pairs.

Why is pip value important?

It’s essential for calculating position sizes, setting stop losses, and understanding your potential profit or loss per trade.

External References

• Investopedia – Pip Definition
• Myfxbook Pip Value Calculator