Pip value calculator
How does the pip calculator work?
This pip calculator multiplies your position size in units by the pip size, then converts the result into US dollars if the pair is not quoted in dollars.
Pip value (USD) = pip value in quote currency × USD value of one unit of the quote currency
A standard lot is 100,000 units for currency pairs and 100 ounces for gold. The pip size is 0.0001 for most pairs, 0.01 for yen pairs, and the calculator uses $0.01 for gold.
Worked examples
These use illustrative prices, not live rates.
- GBP/USD, 0.5 lots: 0.5 × 100,000 × 0.0001 = $5 per pip. The quote currency is already dollars, so no conversion is needed.
- USD/JPY at 147.50, 1 lot: 100,000 × 0.01 = ¥1,000 per pip. Divide by the rate: 1,000 ÷ 147.50 ≈ $6.78.
- EUR/GBP, 1 lot, with GBP/USD at 1.2700: 100,000 × 0.0001 = £10 per pip, and £10 × 1.27 = $12.70.
- Gold, 1 lot of 100 oz: 100 × $0.01 = $1 for each one-cent move, or $100 for a one-dollar move.
How should you read the result?
The figure is what each pip is worth at that size, so multiply it by the distance to your stop-loss to see what the trade risks. At $5 a pip, a 30-pip stop risks $150 plus costs. If that is more than you want to lose on one idea, reduce the size; the position size calculator does this in reverse.
For pairs where the dollar is the base currency or not involved at all, the pip value changes as rates move, so recheck it on longer trades. Pip value also tells you what the spread costs: a 1.5-pip spread at $5 a pip is $7.50 on entry. See trading fees explained.
What mistakes does this help you avoid?
The most common is assuming every pair pays $10 a pip per lot. That is only true when the dollar is the quote currency. On USD/JPY, EUR/GBP or gold the figure is different, and on a large position the gap adds up quickly. Another is forgetting that mini and micro lots scale the value down by ten and a hundred. Entering your real size and a current price here removes both errors.