We use cookies that are necessary for this site to work. With your permission we would also use analytics and advertising cookies to understand how the site is used and to measure our advertising. Cookie Policy
A pip (percentage in point) is the smallest standard unit of price movement in a currency pair. For most forex pairs, one pip equals 0.0001 — the fourth decimal place. For JPY pairs, one pip equals 0.01 — the second decimal place.
Understanding pip values is essential for risk management. When you know how much one pip is worth in your account currency, you can calculate your potential profit or loss before entering a trade, set accurate stop-loss levels, and size your positions properly.
For example, if you're trading 1 standard lot (100,000 units) of EUR/USD, each pip movement is worth $10. A 50-pip move in your favour means a $500 profit. A 50-pip move against you means a $500 loss. Knowing this in advance is what separates disciplined traders from gamblers.
Read the explainerLot Size Is Not Risk: Why the Same 1.00 Lot Risks Different Amounts
For 1 standard lot (100,000 units) of a pair where USD is the quote currency (e.g. EUR/USD), 1 pip = $10. For a mini lot (0.1), 1 pip = $1. For a micro lot (0.01), 1 pip = $0.10.
JPY pairs are quoted to two decimal places instead of four, so 1 pip = 0.01 instead of 0.0001. For 1 standard lot of USD/JPY, 1 pip = ¥1,000, which is worth whatever ¥1,000 converts to at the current USD/JPY rate. At an illustrative rate of 150.00 that is about $6.67; the calculator uses the latest rate.
A pipette is one-tenth of a pip — also called a fractional pip or point. Most brokers including GCC Brokers quote prices to 5 decimal places (3 for JPY pairs). The fifth decimal place is the pipette.
For gold (XAU/USD), 1 pip is typically defined as a $0.01 price movement. What it is worth per lot depends on the contract size in ounces, which is shown in the instrument's specification and used by the calculator. Pip definitions for metals vary by broker, so always check your platform's contract specifications.
Yes. Pip value scales linearly with lot size. Double your lot size and you double your pip value. This is why proper position sizing is critical — larger positions mean larger potential gains but also larger potential losses.
