How do you calculate pip value in forex?

The pip value formula is: Pip Value = (Pip Size × Position Size in Units) / Exchange Rate. For example, trading 1 standard lot (100,000 units) of EUR/USD at 1.0850: Pip Value = (0.0001 × 100,000) = $10 per pip when your account is in USD. If your account is in a different currency, you'll need to convert using the appropriate exchange rate.

What is the pip value for XAU/USD (Gold)?

For XAU/USD (Gold), one pip equals $0.01 in price movement. One standard lot of gold is 100 troy ounces, so the pip value is $1 per pip for a standard lot (100 oz × $0.01 = $1). A $1 move in gold price equals 100 pips, which equals $100 profit or loss per standard lot. For a mini lot (10 oz), the pip value is $0.10 per pip.

What is the difference between standard lot, mini lot, and micro lot?

In forex trading: A Standard Lot = 100,000 units of base currency (approximately $10 per pip for USD pairs). A Mini Lot = 10,000 units (approximately $1 per pip). A Micro Lot = 1,000 units (approximately $0.10 per pip). A Nano Lot = 100 units (approximately $0.01 per pip). Smaller lot sizes allow traders with smaller accounts to manage risk more effectively.

How many pips should I risk per trade?

Professional forex traders typically follow the 1-2% rule: never risk more than 1-2% of your account balance on a single trade. The number of pips you risk depends on your stop loss placement and position size. Use a position size calculator to determine how many lots to trade based on: (1) Your account balance, (2) Your risk percentage (e.g., 1%), and (3) Your stop loss distance in pips.

Why is pip calculation different for JPY pairs?

Japanese Yen (JPY) pairs are quoted to two decimal places instead of four because the Yen has a much lower value compared to other major currencies. The USD/JPY rate is around 150.00 (not 1.5000), so a pip is 0.01 rather than 0.0001. A move from 150.00 to 150.50 equals 50 pips. The pip value formula adjustment: Pip Value = (0.01 × Position Size) / Exchange Rate.

What is a pipette in forex?

A pipette (also called a fractional pip or point) is one-tenth of a pip. Many brokers now quote currency pairs to 5 decimal places (or 3 for JPY pairs), where the fifth decimal is a pipette. For EUR/USD, a pipette is 0.00001. So a price of 1.08505 has 5 pipettes more than 1.08500. Pipettes allow for more precise pricing and tighter spreads.

How do I calculate position size based on risk?

Position Size (in lots) = Risk Amount / (Stop Loss in Pips × Pip Value per Standard Lot). Example: Account $10,000, Risk 1% ($100), Stop Loss 50 pips, EUR/USD pip value $10/pip. Position Size = $100 / (50 × $10) = $100 / $500 = 0.20 lots. This ensures you only lose $100 (1% of account) if stopped out.

What are major, minor, and exotic currency pairs?

Major Pairs: Include USD and are most traded (EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD, NZD/USD). They have the lowest spreads and highest liquidity. Minor Pairs (Crosses): Don't include USD but feature major currencies (EUR/GBP, EUR/JPY, GBP/JPY). Exotic Pairs: Include one major currency and one from an emerging economy (USD/ZAR, USD/TRY, USD/MXN). Exotics have wider spreads and higher volatility.

Forex Pip Calculator

Calculate pip value, profit/loss, and optimal position size for any currency pair

What is a Pip?

A pip (Percentage In Point) is the smallest price movement in forex. Most pairs: 1 pip = 0.0001. JPY pairs: 1 pip = 0.01. Gold (XAU/USD): 1 pip = $0.01.

Calculate the monetary value of each pip movement based on position size and account currency.

How to use:

1 Select Currency Pair (EUR/USD, GBP/JPY, XAU/USD for Gold)

2 Choose Account Currency and enter Exchange Rate

3 Select Position Size (lot size) — pip value calculates instantly

4 Optional: Enable Profit/Loss or Position Size by Risk

Currency Pair Selection

Currency Pair

Majors: Include USD. Minors: No USD. Exotics: Emerging markets. Metals: XAU=Gold, XAG=Silver.

Account Currency

Your broker account's base currency.

Current Exchange Rate

Current rate from your broker or TradingView.

Position Size (Lot Size)

Quick Select Lot Size

Or Enter Custom Lot Size

1 Standard Lot = 100,000 units. Micro (0.01) = 1,000 units. Mini (0.1) = 10,000 units.

Profit/Loss Calculator Optional

Enable

Calculate profit/loss based on entry and exit prices.

Trade Direction

Buy: Profit if price rises. Sell: Profit if price falls.

Entry Price

Price where you opened (or will open) the position.

Exit Price

Price where you closed (or will close) the position.

Position Size by Risk Optional

Enable

Calculate optimal lot size based on account balance, risk %, and stop loss.

Results

Pip Value

$10.00

Money gained/lost per pip movement

Position Value

$100,000

Total value of your trade exposure

Units

100,000

base currency units traded

Trade Profit/Loss

Pips Gained/Lost

—

Exit − Entry price in pips

Profit/Loss

—

Pips × Pip Value = P/L

Return %

—

P/L ÷ Position Value × 100

Enter both Entry Price and Exit Price above to calculate profit/loss.

Calculation Breakdown

Pip Size: 0.0001

Formula: Pip Value = (Pip Size × Lot Size × Contract Size) / Exchange Rate

Calculation: (0.0001 × 1 × 100,000) / 1.08500 = $10.00

Understanding Pips in Forex Trading

A pip (Percentage in Point) is the fundamental unit of measurement for price changes in the forex market. Understanding pip values is essential for calculating potential profit/loss and managing risk on every trade.

Disclaimer: This calculator is for educational and informational purposes only. It should not be considered investment advice. Forex trading involves substantial risk of loss and is not suitable for all investors. Always consult with a qualified financial advisor before making trading decisions.

Pip Values by Currency Type

Currency Type	Pip Size	Example Pairs	1 Pip Movement
Most Pairs	0.0001	EUR/USD, GBP/USD, AUD/USD	1.0850 → 1.0851
JPY Pairs	0.01	USD/JPY, EUR/JPY, GBP/JPY	150.00 → 150.01
Gold (XAU/USD)	0.01	XAU/USD	2050.00 → 2050.01
Silver (XAG/USD)	0.001	XAG/USD	23.000 → 23.001

The Pip Value Formula

The pip value depends on three factors: the pip size, your position size (lots), and the exchange rate:

Pip Value = (Pip Size × Position Size in Units) ÷ Exchange Rate

Example: Trading 1 standard lot (100,000 units) of EUR/USD at 1.0850:

Pip Size = 0.0001
Position Size = 100,000 EUR
Pip Value = (0.0001 × 100,000) = $10 per pip

Lot Sizes Explained

Lot Type	Units	Pip Value (USD pairs)	Best For
Standard	100,000	~$10 per pip	Professional traders, large accounts ($10k+)
Mini	10,000	~$1 per pip	Intermediate traders ($1k-$10k accounts)
Micro	1,000	~$0.10 per pip	Beginners, small accounts, precise risk control
Nano	100	~$0.01 per pip	Practice accounts, cent accounts

Gold (XAU/USD) Pip Value Explained

Gold trading has different contract specifications than currency pairs:

1 standard lot of gold = 100 troy ounces
1 pip = $0.01 movement in gold price (e.g., 2050.00 → 2050.01)
Pip value for 1 standard lot = 100 oz × $0.01 = $1 per pip
$1 price movement = 100 pips = $100 profit/loss per standard lot
$10 price movement = 1,000 pips = $1,000 profit/loss per standard lot

Risk Management: The 1-2% Rule

Professional traders follow the 1-2% rule: never risk more than 1-2% of your account balance on a single trade. Here's how to calculate your position size:

Determine your risk amount: Account Balance × Risk Percentage
Example: $10,000 × 1% = $100 max risk
Set your stop loss: Distance in pips from entry
Example: 50 pips
Calculate position size: Risk Amount ÷ (Stop Loss × Pip Value per Standard Lot)
Example: $100 ÷ (50 × $10) = 0.20 lots

Pro Tip: Enable the "Position Size by Risk" section above to automatically calculate your optimal lot size based on your account balance, risk tolerance, and stop loss distance.

Frequently Asked Questions

A pip (Percentage in Point) is the smallest standardized price movement in forex trading. For most currency pairs like EUR/USD or GBP/USD, one pip equals 0.0001 (the fourth decimal place). For Japanese Yen pairs like USD/JPY, one pip equals 0.01 (the second decimal place) because the Yen has a lower relative value. For Gold (XAU/USD), one pip is typically $0.01 in price movement.

The pip value formula is: Pip Value = (Pip Size × Position Size) / Exchange Rate. For a standard lot (100,000 units) of EUR/USD, one pip equals approximately $10 when your account is in USD. The exact pip value varies based on your lot size, the currency pair traded, and your account's base currency.

For XAU/USD (Gold), one pip equals $0.01 in price movement. One standard lot of gold is 100 troy ounces, so the pip value is $1 per pip for a standard lot (100 oz × $0.01). A $1 move in the gold price equals 100 pips, which translates to $100 profit or loss per standard lot. For a mini lot (10 oz), the pip value is $0.10 per pip.

Standard lot: 100,000 units of base currency (~$10/pip for USD pairs)
Mini lot: 10,000 units (~$1/pip)
Micro lot: 1,000 units (~$0.10/pip)
Nano lot: 100 units (~$0.01/pip)
Smaller lot sizes allow traders with smaller accounts to manage risk more effectively and maintain proper position sizing.

The number of pips to risk depends on your strategy, market conditions, and the specific pair's volatility. Professional forex traders follow the 1-2% rule: risk no more than 1-2% of your account balance per trade. Instead of focusing on a fixed pip amount, calculate your position size based on your risk tolerance and stop loss distance using this calculator's "Position Size by Risk" feature.

Japanese Yen (JPY) pairs are quoted to two decimal places instead of four because the Yen has a much lower value compared to other major currencies. The USD/JPY rate is around 150.00 (not 1.5000 like EUR/USD). Therefore, a pip for JPY pairs is 0.01 rather than 0.0001. A move from 150.00 to 150.50 equals 50 pips, not 5,000 pips.

Profit in Pips = (Exit Price - Entry Price) / Pip Size

For a long (buy) EUR/USD trade entered at 1.0850 and exited at 1.0900:
(1.0900 - 1.0850) / 0.0001 = 50 pips profit

For a short (sell) trade, use: (Entry Price - Exit Price) / Pip Size

To convert to currency: Profit = Pips × Pip Value × Number of Lots

A pipette (also called a fractional pip or point) is one-tenth of a pip. Many modern brokers quote currency pairs to 5 decimal places (or 3 for JPY pairs). For EUR/USD, a pipette is 0.00001. So a price of 1.08505 has 5 pipettes more than 1.08500 (or 0.5 pips). Pipettes allow for more precise pricing and tighter spreads but don't change how you calculate position size or risk.

Major Pairs: Include USD and are the most traded (EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD, NZD/USD). They have the lowest spreads and highest liquidity.

Minor Pairs (Crosses): Don't include USD but feature other major currencies (EUR/GBP, EUR/JPY, GBP/JPY). Moderate spreads and liquidity.

Exotic Pairs: Include one major currency and one from an emerging economy (USD/ZAR, USD/TRY, USD/MXN). Higher spreads, lower liquidity, and higher volatility.

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Quick Reference

Standard Lot: 100,000 units

Mini Lot: 10,000 units

Micro Lot: 1,000 units

Most Pairs Pip: 0.0001

JPY Pairs Pip: 0.01

Gold (XAU) Pip: $0.01

Abbreviations

PIP Percentage in Point

XAU Gold (chemical symbol)

XAG Silver (chemical symbol)

JPY Japanese Yen

CHF Swiss Franc

NZD New Zealand Dollar

Risk Management

Professional traders typically risk only 1-2% of their account per trade. Enable "Position Size by Risk" above to calculate your optimal lot size based on your stop loss distance and risk tolerance.

Disclaimer: This calculator is for educational purposes only and should not be considered investment advice. Forex and CFD trading involves substantial risk of loss. Past performance is not indicative of future results.