What is a pip and how do you calculate pip value?

What is a pip?

A pip is the smallest standard price move quoted for a currency pair. It is 0.0001 for most pairs and 0.01 for pairs that include the Japanese yen. If EUR/USD moves from 1.0850 to 1.0851, it moved one pip.

Lot sizes

• Standard lot: 100,000 units
• Mini lot: 10,000 units (0.1)
• Micro lot: 1,000 units (0.01)

Pip value when the quote currency is your account currency

For EUR/USD with a USD account, pip value = units × 0.0001. A standard lot gives 100,000 × 0.0001 = $10 per pip. A mini lot is $1 and a micro lot is $0.10.

Pip value when the base currency is your account currency

For USD/JPY with a USD account, one pip is 0.01 yen per unit, so a standard lot earns 1,000 yen per pip. Divide by the price to convert to dollars. At 150, that is 1,000 ÷ 150 = $6.67.

Cross pairs

For a pair like EUR/GBP with a USD account, calculate the pip value in pounds (a standard lot gives £10) and multiply by the pound-to-dollar rate. At 1.27 that is $12.70.

Using pips for risk

Multiply pip value by the number of pips to your stop to see your risk in money. A 30 pip stop on one standard lot of EUR/USD risks $300. To choose a lot size from your risk, read how to calculate position size.

Get the pip value for any pair instantly with the pip value calculator, or work out the lot size with the position size calculator.

Last updated October 2026. For education only. Not financial advice.