Pip value calculator
This pip calculator answers one question: if the price moves by one pip, how much does your position gain or lose in US dollars? Knowing that number before you trade is the basis of every stop-loss and every position size.
The formula
If the quote currency is not USD: pip value in USD = pip value in quote currency ÷ USD/quote rate
Pip size: 0.0001 for most pairs, 0.01 for JPY pairs. Contract size: 100,000 units per lot (100 oz for gold).
For pairs where the dollar is the second currency, such as EUR/USD or GBP/USD, the result is already in dollars: one standard lot is $10 per pip, half a lot $5. For pairs such as USD/JPY or USD/CHF, the pip is worth a fixed amount of yen or francs, so the calculator converts it at the current price. For cross pairs such as EUR/GBP, it asks for the rate needed to convert into dollars.
Worked example
Illustrative numbers. You hold 1 standard lot of USD/JPY with the price at 147.50.
- Pip value in yen: 1 × 100,000 × 0.01 = ¥1,000.
- Converted to dollars: ¥1,000 ÷ 147.50 = $6.78 per pip.
A 20-pip move against this position would cost about 20 × $6.78 = $135.60. Compare that with EUR/USD, where 0.5 lots gives 0.5 × 100,000 × 0.0001 = $5 per pip whatever the price.
How to use the result
- Setting a stop: multiply the pip value by the distance to your stop to see the loss if it is hit.
- Choosing a size: the position size calculator uses the same pip value to work backwards from the amount you are willing to risk.
- Reading costs: a 1.2-pip spread on a $10-per-pip position costs $12 every time you open a trade.
Pip values for pairs not quoted in dollars change as exchange rates move, so recheck them on open positions. For background on pips and lots, see how forex trading works.