How pip value is calculated
Pip value = Size in lots × Contract size × Pip size — in the quote currency (the second currency of the pair). If the account currency differs, the result is converted at the current rate. A point is a tenth of a pip and is worth ten times less.
For EURUSD per lot: 100,000 × 0.0001 = $10. Per 0.1 lots — $1, per 0.01 lots — $0.10.
Pip value per lot
| Instrument | Pip | Calculation | USD account |
|---|---|---|---|
| EURUSD, GBPUSD, AUDUSD, NZDUSD | 0.0001 | 100,000 × 0.0001 = $10 | $10 |
| USDJPY at 150 | 0.01 | 100,000 × 0.01 = ¥1,000; 1,000 / 150 | ≈ $6.67 |
| USDCHF at 0.90 | 0.0001 | 10 francs; 10 / 0.90 | ≈ $11.11 |
| EURGBP with GBPUSD at 1.25 | 0.0001 | £10 × 1.25 | $12.5 |
| XAUUSD, 100-ounce contract | $0.1 | 100 × 0.1 | $10 ($0.01 point — $1) |
| XAGUSD, 5,000-ounce contract | $0.01 | 5,000 × 0.01 | $50 ($0.001 point — $5) |
When you need a rate
- the quote currency matches the account currency (EURUSD on a USD account) — no rate needed;
- the account currency comes first in the pair (USDJPY on a USD account) — the value in yen is divided by the USDJPY rate;
- the quote currency comes first against the account currency (EURGBP on a USD account) — the value in pounds is multiplied by the GBPUSD rate.
Take the rate from your terminal: the site does not insert quotes itself, so it never calculates on a stale price.
Why pip value matters
- Trade result: profit or loss = pips × pip value. 30 pips on 0.5 lots of EURUSD — 30 × $5 = $150.
- Position size from risk: lots = risk in money / (stop in pips × pip value per lot) — use the lot size calculator.
- Comparing instruments: 20 pips on USDJPY and on EURUSD are worth different amounts, so the same stop in pips is a different risk.
Pips and points
With five-digit quotes a point is the last digit of the price (0.00001 for EURUSD, 0.001 for USDJPY) and a pip is ten points. MetaTrader shows distances in points: «200 points» is 20 pips. For gold a pip is usually $0.1 and a point $0.01.