Pip value calculator

One pip, in money, at the size you are actually trading — forex, gold, oil, indices and crypto, converted into your account currency.

How it is worked out

A pip is a distance, so turning it into money is one multiplication:

pip value = pip size × contract size × fx to your currency

On EURUSD the pip is the fourth decimal and a lot is 100,000 units, so 0.0001 × 100,000 gives 10 units of the quote currency — ten dollars, and no conversion needed if the account is in dollars. On USDJPY the pip is the second decimal, so 0.01 × 100,000 is 1,000 yen, and that has to be divided by the USDJPY rate to land in dollars. It is the same sum both times; only the numbers going in change.

Gold, oil and the word "pip"

Outside forex the word stops being precise. On gold most brokers quote two decimals and size a lot at 100 ounces, so one cent of movement is a dollar a lot — but plenty of traders say "pip" when they mean a whole dollar of gold, which is a hundred times that. Neither is wrong; they are different units with one name.

Oil is the same story with bigger consequences. A lot is 1,000 barrels at many CFD desks and 100 at others, so the same "pip" is worth ten times more at one broker than at another. When the number here disagrees with your terminal, the terminal is right — copy the contract size across and the two will agree.

What this does not include

Spread and commission. Both are charged in the same money the pip value is measured in, so a two pip spread on a one lot EURUSD position is twenty dollars gone before the trade has done anything. The pip value tells you what a move is worth, not what a trade costs.

Next questions, usually: what lot size should this trade be, and is the reward worth the risk.

A calculator, not advice. It makes no claim about what any trade will do.