Pip Calculator

A pip (percentage in point) is the smallest standard price movement in forex. For most currency pairs, a pip is 0.0001 (the fourth decimal place). For JPY pairs, a pip is 0.01 (the second decimal place). Understanding pip values is fundamental to calculating profit, loss, and risk in forex trading.

For a standard lot (100,000 units) of EUR/USD, one pip equals approximately $10. For a mini lot (10,000 units), one pip equals $1. For a micro lot (1,000 units), one pip equals $0.10. These values change slightly when your account currency differs from the quote currency of the pair you're trading.

Professional traders use pip calculations to determine exact position sizes based on their risk tolerance. The formula: Position Size = Risk Amount ÷ (Stop Loss in Pips × Pip Value). If your account is $10,000, you risk 1% ($100), and your stop loss is 25 pips on EUR/USD, your position size is $100 ÷ (25 × $0.10) = 40 micro lots.

This approach ensures every trade risks the same dollar amount regardless of the pair or stop loss distance. A tight 15-pip stop gets a larger position; a wide 50-pip stop gets a smaller one. The risk stays constant at 1% of your account — the foundation of professional money management.

Pip values aren't the same across all pairs. For pairs where USD is the quote currency (EUR/USD, GBP/USD, AUD/USD), one pip on a standard lot is always $10. For pairs where USD is the base currency (USD/JPY, USD/CHF, USD/CAD), the pip value fluctuates with the exchange rate and must be converted. This calculator handles that conversion automatically.

Cross pairs (EUR/GBP, GBP/JPY, AUD/NZD) have pip values denominated in the quote currency, which then need to be converted to your account currency. GBP/JPY is particularly tricky because the pip value is in yen, which must be converted to dollars. Always use a pip calculator rather than doing this math manually — errors in position sizing are one of the most common causes of unexpected losses.