Calculate Pips

Forex Pip Calculator

Use this calculator to determine the pip value and potential profit or loss for your forex trades. Understanding pip values is crucial for managing risk and calculating potential returns.

What is a Pip in Forex Trading?

A "pip" (short for "percentage in point" or "price interest point") is the smallest unit of price movement in a currency pair. It's a standardized measure that allows traders to quantify the change in exchange rates.

Understanding Pip Values

For most currency pairs, a pip is the fourth decimal place (0.0001). For example, if EUR/USD moves from 1.1200 to 1.1201, it has moved one pip. However, for currency pairs involving the Japanese Yen (JPY), a pip is typically the second decimal place (0.01). So, if USD/JPY moves from 145.00 to 145.01, it has also moved one pip.

The value of a single pip depends on several factors:

1. Currency Pair: Whether it's a 4-decimal or 2-decimal pair.
2. Lot Size: The volume of currency being traded (standard, mini, or micro lots).
3. Account Currency: The currency your trading account is denominated in.
4. Current Exchange Rate: The prevailing market price of the currency pair and any necessary conversion rates.

How to Calculate Pip Value

The general formula for calculating the value of one pip in the quote currency of a pair is:

Pip Value (in Quote Currency) = (Pip Step) × (Contract Size)

• Pip Step: 0.0001 for most pairs, 0.01 for JPY pairs.
• Contract Size: This is determined by your lot size.
  • Standard Lot (1.00) = 100,000 units
  • Mini Lot (0.10) = 10,000 units
  • Micro Lot (0.01) = 1,000 units

Once you have the pip value in the quote currency, you convert it to your account currency using the relevant exchange rate.

Why is the Pip Calculator Important?

A pip calculator is an essential tool for forex traders because it helps you:

• Manage Risk: By knowing the exact monetary value of each pip, you can set appropriate stop-loss and take-profit levels, ensuring your risk per trade aligns with your overall risk management strategy.
• Calculate Profit/Loss: Easily determine the potential profit or loss of a trade before entering it, based on your entry and exit points.
• Position Sizing: Adjust your lot size to match your desired risk per trade, ensuring you don't over-leverage your account.
• Compare Trades: Understand the true value of price movements across different currency pairs, regardless of their varying exchange rates.

How to Use This Calculator

1. Currency Pair: Enter the pair you are trading (e.g., EUR/USD, USD/JPY).
2. Lot Size: Input your desired lot size (e.g., 0.01 for a micro lot, 0.1 for a mini lot, 1 for a standard lot).
3. Entry Price: Enter the price at which you plan to open your trade.
4. Exit Price: Enter the price at which you plan to close your trade (your target or stop-loss).
5. Account Currency: Select the currency your trading account is denominated in.
6. Conversion Rate (Quote Currency to Account Currency): This is crucial for accurate calculations if your account currency is different from the quote currency of the pair you are trading.
   • If the quote currency of your pair IS your account currency (e.g., trading EUR/USD with a USD account), enter 1.
   • Otherwise, enter the current exchange rate that converts the quote currency of your pair into your account currency. For example:
     • If trading EUR/GBP (quote currency is GBP) and your account is USD, enter the current GBP/USD rate (e.g., 1.25).
     • If trading USD/JPY (quote currency is JPY) and your account is EUR, enter the current JPY/EUR rate (e.g., 0.0065).
7. Click "Calculate Pips" to see the total pips moved, the value per pip, and your estimated profit or loss.

Examples

Example 1: EUR/USD Trade with USD Account

• Currency Pair: EUR/USD
• Lot Size: 0.1 (Mini Lot)
• Entry Price: 1.0850
• Exit Price: 1.0900
• Account Currency: USD
• Conversion Rate (Quote to Account): 1 (since USD is the quote currency and account currency)
• Calculation:
  • Pip Step: 0.0001
  • Pips Moved: (1.0900 – 1.0850) / 0.0001 = 50 pips
  • Pip Value in Quote Currency (USD): 0.0001 * (0.1 * 100,000) = $1.00 per pip
  • Final Pip Value (USD): $1.00 * 1 = $1.00 per pip
  • Profit/Loss: 50 pips * $1.00/pip = $50.00 Profit

Example 2: USD/JPY Trade with EUR Account

• Currency Pair: USD/JPY
• Lot Size: 0.5 (Half Standard Lot)
• Entry Price: 145.20
• Exit Price: 144.70
• Account Currency: EUR
• Conversion Rate (Quote to Account): JPY/EUR rate (e.g., 0.0065)
• Calculation:
  • Pip Step: 0.01
  • Pips Moved: (145.20 – 144.70) / 0.01 = 50 pips
  • Pip Value in Quote Currency (JPY): 0.01 * (0.5 * 100,000) = 500 JPY per pip
  • Final Pip Value (EUR): 500 JPY * 0.0065 EUR/JPY = €3.25 per pip
  • Profit/Loss: -50 pips * €3.25/pip = -€162.50 Loss (since exit price is lower than entry price)

Warning:

Currency Pair:

Pip Step:

Pips Moved:

Value per Pip:

Trade Direction:

Estimated Profit/Loss:

= 0 ? 'green' : 'red') + ";'>" + formattedProfitLoss + " " + accountCurrency + "