Pip value calculator

How pip value is calculated

A pip is the standard price step of a currency pair: 0.0001 for most pairs and 0.01 for pairs quoted in yen or forint. The value of one pip is always earned or lost first in the quote currency, the second currency in the pair. The formula is:

pip value (quote currency) = pip size × number of units

For one standard lot of EUR/USD that is 0.0001 × 100,000 = 10 US dollars. If your account is in euro, the calculator converts that 10 dollars to euro at the latest ECB reference rate. That is why a EUR/USD pip is worth slightly less than €10 when the euro is stronger than the dollar.

Why European traders need to convert

Most calculators assume a dollar account. In Europe accounts are often held in EUR, GBP, CHF, PLN, CZK, SEK or HUF, and the conversion matters more than people expect. Trading USD/JPY from a zloty account, for example, means your pip is paid in yen and converted to zloty, so the profit of the same trade moves with two exchange rates.

Pip values at a glance (1 standard lot)

• Pairs quoted in USD (EUR/USD, GBP/USD, AUD/USD): 10 USD per pip.
• Pairs quoted in JPY (USD/JPY, EUR/JPY): 1,000 JPY per pip.
• Pairs quoted in CHF (USD/CHF, EUR/CHF): 10 CHF per pip.
• EUR/PLN, EUR/SEK, EUR/NOK: 10 PLN, SEK or NOK per pip, which is a small amount in euro. Spreads on these pairs are also wider in pips.

For indices, gold and other CFDs, brokers use points instead of pips and set their own contract sizes. We use common sizes (for example 100 ounces per lot of gold), but always check your broker's contract specification.

Next step: size your trade so that a stop-loss costs a fixed share of your account with the position size calculator, or read our full guide to pips.