Pip Calculator

What Is a Pip in Forex?

A pip (percentage in point) is the smallest standardised price move in a currency pair. For most pairs, one pip equals 0.0001 - the fourth decimal place. For JPY pairs (USD/JPY, EUR/JPY), one pip equals 0.01, the second decimal place, because the Japanese yen trades at a fundamentally different scale.

Many brokers now quote prices to a fifth decimal place (0.00001) - this fractional unit is called a pipette or point, and equals one-tenth of a pip. Your broker's platform may display both.

How to Calculate Pip Value

Pip value depends on three things: the pip size for the pair, the lot size you are trading, and the current exchange rate if your account currency differs from the pair's quote currency.

Pip Value by Lot Size

Why Pip Value Matters for Risk Management

Knowing your pip value before entering a trade is the foundation of position sizing. If you are risking 1% of a $10,000 account ($100) and your stop-loss is 50 pips on EUR/USD, you need a pip value of $100 ÷ 50 = $2 per pip - which means trading 0.2 standard lots (20,000 units).

Without calculating pip value, traders in the UAE and Gulf region often over-leverage - risking far more capital per pip than their account can withstand. Use this calculator before every trade to confirm your exposure.

Frequently Asked Questions