Pip Value Calculator

A pip calculator answers a single question: if the price moves by one pip, how many dollars does my position gain or lose? Knowing that number is the first step to setting a stop-loss in money terms rather than in chart distance.

The formula

A standard lot is 100,000 units of the base currency, or 100 ounces for gold. The pip size is 0.0001 for most pairs, 0.01 for yen pairs, and $0.01 for gold in this tool.

• Pairs quoted in USD (EUR/USD, GBP/USD): no conversion is needed. One standard lot is always $10 a pip.
• Pairs with USD as the base (USD/JPY, USD/CAD): divide by the current price to convert into dollars.
• Cross pairs (EUR/GBP, GBP/JPY): the calculator asks for a conversion rate so it can turn the quote currency into dollars.

Worked example: USD/JPY

Illustrative numbers. You hold 0.5 lots of USD/JPY with the price at 150.00.

1. Units: 0.5 × 100,000 = 50,000.
2. Pip value in yen: 50,000 × 0.01 = 500 yen.
3. In dollars: 500 ÷ 150 = $3.33 per pip.

A 40-pip stop on that position would therefore risk about 40 × $3.33 = $133 before costs. On gold, one lot of 100 oz moves $1 for every $0.01 change in price, so a $5 move is worth $500.

Reading the pip calculator result

The big number is the dollar value of a one-pip move for the size you entered; the line underneath confirms the units and pip size used. For pairs whose quote currency is not the dollar, the value changes slightly as exchange rates move, so recheck it on the day you trade. The figure does not include spread or commission.

Once you know the pip value, use the position size calculator to size a trade from the amount you are prepared to lose, and the margin calculator to see how much collateral it ties up. The basics of pips and lots are covered in how forex trading works.