What is a pip?
A pip is the standard unit of price movement in forex. For most pairs it is the fourth decimal place (0.0001). For pairs quoted in Japanese yen, such as USD/JPY or GBP/JPY, it is the second decimal place (0.01). Gold (XAU/USD) is usually measured in 0.01 steps on a 100-ounce contract.
How the pip value is calculated
When the quote currency is the same as your account currency, for example EUR/USD on a USD account, the conversion rate is 1 and one standard lot is worth $10 per pip. For every other combination the calculator converts the result using the latest reference rate, which you can replace with your broker’s live price.
Why pip value matters
- It turns a stop loss in pips into a real money amount.
- It lets you compare risk across pairs that move very differently.
- It is the first step in choosing a safe position size.
Frequently asked questions
How much is 1 pip worth on a standard lot?
On pairs quoted in USD, such as EUR/USD or GBP/USD, one pip on a standard lot (100,000 units) is worth $10 for a USD account. On other pairs the value changes with the exchange rate.
What is the pip size for JPY pairs?
For pairs quoted in Japanese yen the pip is 0.01, the second decimal place, instead of 0.0001.
Is a pip the same as a point?
No. Many brokers quote prices with an extra decimal. That extra digit is a pipette or point, and 10 points equal 1 pip.
Why does my broker show a slightly different value?
Brokers use their live price for the conversion. This calculator uses daily reference rates by default, so edit the conversion rate field to match your platform exactly.