Pip value calculator
This pip calculator converts a one-pip price move into US dollars for the position size you enter. It is the building block for every other forex calculation, from the loss at a stop to the size of a trade.
The formula behind the pip calculator
Pip value in USD = pip value in the quote currency, converted at the current rate
Pip size = 0.0001 for most pairs, 0.01 for JPY pairs, 0.01 per ounce for gold (100 oz per lot)
When the US dollar is the quote currency, as in EUR/USD or GBP/USD, no conversion is needed and one standard lot is always worth $10 per pip. When the dollar is the base currency, as in USD/JPY, the pip value is in yen and must be divided by the rate. For cross pairs such as EUR/GBP, the calculator asks for a conversion rate so it can express the answer in dollars.
Worked examples
Illustrative figures, checked by hand:
- EUR/USD, 0.3 lots: 0.0001 × 30,000 units = $3.00 per pip.
- USD/JPY at 150.00, 1 lot: 0.01 × 100,000 = ¥1,000 per pip; ¥1,000 ÷ 150.00 = about $6.67 per pip.
- Gold (XAU/USD), 1 lot of 100 oz: 0.01 × 100 = $1.00 per pip, so a $10 move in the gold price is 1,000 pips, or $1,000.
Reading the result
Multiply the pip value by the distance to your stop-loss to see what you stand to lose if the stop is hit. With $3 per pip and a 35-pip stop, that is $105 before costs. If the number feels too large, reduce the lot size rather than moving the stop closer than the market's normal movement allows. The position size calculator does this in reverse, starting from the amount you are prepared to risk.
Remember that pip value for non-USD-quoted pairs changes a little as the exchange rate moves, and that the spread you pay on entry is itself measured in pips. Our guide to how forex trading works explains lots, spreads and swaps in more depth.