Pip value calculator
Use this pip calculator to put a dollar figure on the smallest standard price step for your position. Select a pair, type in the live price and your size in lots. For cross pairs such as EUR/GBP, a conversion rate field appears so the result can be expressed in dollars.
What formula does the pip calculator use?
Units per lot: 100,000 for currencies, 100 oz for gold · Pip size: 0.0001, or 0.01 for yen pairs and gold
The last term is what changes between pair types. When the dollar is the quote currency, it is simply 1. When the dollar is the base, as in USD/CAD, it is 1 ÷ the pair's price. For a cross, it comes from a second rate that links the quote currency to the dollar.
How does it work on real pair types?
Illustrative prices, chosen for easy arithmetic:
- GBP/USD, 0.3 lots: 0.3 × 100,000 × 0.0001 × 1 = $3.00 per pip.
- USD/CAD at 1.3600, 1 lot: 100,000 × 0.0001 = 10 Canadian dollars per pip, and 10 ÷ 1.36 = $7.35.
- EUR/GBP, 1 lot, with GBP/USD at 1.2700: 100,000 × 0.0001 = £10 per pip, and £10 × 1.27 = $12.70.
- XAU/USD, 0.5 lots: 50 oz × $0.01 = $0.50 per pip, so a $10 move in the gold price (1,000 pips) is worth $500.
How should I read the result?
Multiply the pip value by the distance to your stop-loss to see what you stand to lose if it is hit, and by the distance to your target for the potential gain. On the 0.3-lot GBP/USD position above, a 40-pip stop means a $120 loss before costs. If that number feels uncomfortable, the position is too large, whatever the leverage allows. The position size calculator does this in reverse, starting from the loss you will accept.
Pip values on non-USD-quoted pairs drift as exchange rates move, so recalculate when prices have changed noticeably. Spread and commission can also be translated into money this way: a 1.2-pip spread on the $3.00-per-pip position costs $3.60. The guide to trading fees adds up the rest, and how forex trading works explains pips and lots from the beginning.