By BrokaBoy Research Team · Reviewed 13 October 2026 · Updated 13 October 2026 · 7 min read
Pip value = pip size × trade size in units, which gives the value in the quote currency; then convert it into your account currency. For EUR/USD, 0.0001 × 100,000 = $10 per pip per standard lot. For USD/JPY at 150.00, 0.01 × 100,000 = ¥1,000, or about $6.67. Convert at the current rate if your account is in another currency.
Key takeaways
Step 1: pip size × units = pip value in the quote currency (the second currency in the pair).
Step 2: convert that amount into your account currency at the current exchange rate.
If the quote currency equals your account currency, pip value is fixed: $10 per lot on EUR/USD for a USD account.
For JPY pairs a pip is 0.01, not 0.0001; for gold, brokers define it as $0.01 or $0.10.
Pip value scales linearly with lot size: 0.10 lot is one-tenth of a standard lot.
The pip value formula
Pip value has two steps. Most confusion comes from skipping the second one.
Step 1, value in the quote currency:Pip value (quote currency) = pip size × number of units
Step 2, convert to your account currency:
Multiply or divide by the exchange rate between the quote currency and your account currency.
Where:
Pip size = 0.0001 for most pairs, 0.01 for pairs with JPY as the quote currency (and for some exotics such as USD/HUF, check your broker).
Units = lots × 100,000. So 1 lot = 100,000; 0.10 = 10,000; 0.01 = 1,000.
Quote currency = the second currency in the pair. In GBP/JPY it is the yen.
You enter all prices and exchange rates yourself; nothing is fetched live. Results are estimates and exclude broker-specific charges.
Pips, pipettes and points
Term
EUR/USD
USD/JPY
Notes
Pip
0.0001
0.01
The standard unit traders talk in
Pipette (fractional pip)
0.00001
0.001
The extra decimal most brokers quote
"Point" in MT4/MT5
0.00001
0.001
The platform's smallest step, i.e. a pipette on 5-digit quotes
That last row trips people up. On a five-digit EUR/USD quote, a stop of 200 points in MetaTrader equals 20 pips. More in the pip glossary entry and the pipette entry.
Case 1: the quote currency is your account currency
This is the easy case: no conversion. For a USD account trading EUR/USD, GBP/USD, AUD/USD or NZD/USD:
0.0001 × 100,000 = $10 per pip per standard lot
Lots
Units
Pip value
1.00
100,000
$10.00
0.50
50,000
$5.00
0.10
10,000
$1.00
0.05
5,000
$0.50
0.01
1,000
$0.10
This value does not change with the price of EUR/USD. Whether the pair is at 1.05 or 1.20, a pip on one lot is $10.
Case 2: the account currency is the base currency
USD account trading USD/JPY, USD/CAD or USD/CHF. The pip value is fixed in the quote currency, so you convert by dividing by the pair's own price.
USD/JPY at 150.00 (illustrative)
Step 1: 0.01 × 100,000 = ¥1,000 per pip per lot
Step 2: 1,000 ÷ 150.00 = $6.67
USD/CAD at 1.3700
Step 1: 0.0001 × 100,000 = C$10
Step 2: 10 ÷ 1.37 = $7.30
USD/CHF at 0.8800
Step 1: CHF 10
Step 2: 10 ÷ 0.88 = $11.36
Because the conversion uses the live price, these pip values drift as the market moves. At USD/JPY 140, the yen pip would be worth 1,000 ÷ 140 = $7.14. The USD/JPY pip value calculator recalculates this automatically.
Case 3: cross pairs (neither currency is your account currency)
USD account trading EUR/GBP:
Step 1: 0.0001 × 100,000 = £10 per pip per lot (GBP is the quote)
Step 2: convert pounds to dollars at GBP/USD 1.2700: 10 × 1.27 = $12.70
USD account trading GBP/JPY:
Step 1: 0.01 × 100,000 = ¥1,000
Step 2: convert yen to dollars using USD/JPY 150.00: 1,000 ÷ 150 = $6.67
The rule for the conversion direction: if the rate you use is quoted as your currency per foreign unit (GBP/USD gives dollars per pound), multiply. If it is quoted as foreign units per your currency (USD/JPY gives yen per dollar), divide.
Case 4: your account is not in USD
This is the step most guides skip, and it matters for traders in South Africa, Nigeria, Kenya, Europe and elsewhere. Your platform converts profits into your account currency, so your pip value is in that currency too.
EUR/USD pip value in different account currencies
Starting value: $10 per pip per lot. Illustrative rates:
Account currency
Rate used
Calculation
Pip value per lot
Per 0.10 lot
USD
none
10
$10.00
$1.00
ZAR
USD/ZAR 17.50
10 × 17.50
R175.00
R17.50
NGN
USD/NGN 1,500
10 × 1,500
₦15,000
₦1,500
EUR
EUR/USD 1.0850
10 ÷ 1.0850
€9.22
€0.92
USD/JPY pip value in a rand account
Step 1: ¥1,000 per pip per lot
Step 2a: to dollars, 1,000 ÷ 150 = $6.667
Step 2b: to rand, 6.667 × 17.50 = R116.67
You can also go directly through the cross rate. ZAR/JPY = 150 ÷ 17.50 = 8.571 yen per rand, so 1,000 ÷ 8.571 = R116.67. Same answer, which is a good way to check your work.
USD/ZAR itself, in a USD account
USD/ZAR is quoted to four decimals, so a pip is 0.0001: 0.0001 × 100,000 = R10 per pip per lot. Converted to dollars at 17.50: 10 ÷ 17.50 = $0.57. That small pip value is why USD/ZAR moves of hundreds of pips per day are normal, and why stop distances on exotics look huge. See the USD/ZAR pip value tool.
Case 5: gold and other non-forex instruments
Gold (XAUUSD) is normally 100 oz per lot, priced in dollars per ounce. Brokers do not agree on what a gold pip is:
Gold pip definition
Value per 1.00 lot
Value per 0.01 lot
$0.01
$1
$0.01
$0.10
$10
$0.10
Either way, a $1 move in gold = $100 per lot. Always check the contract size in your broker's specification. The full explanation is in our gold pip value guide, with a calculator at XAUUSD pip value.
For indices, oil and crypto, the same logic applies with "point" and contract size instead of pips: value per point = contract size × point size, converted to your account currency.
Quick reference: pip value per standard lot (USD account)
Illustrative prices. Recalculate with live rates.
Pair
Pip size
Value in quote currency
Rate used
Pip value (USD)
EUR/USD
0.0001
$10
none
$10.00
GBP/USD
0.0001
$10
none
$10.00
USD/JPY
0.01
¥1,000
150.00
$6.67
USD/CAD
0.0001
C$10
1.3700
$7.30
USD/CHF
0.0001
CHF 10
0.8800
$11.36
EUR/GBP
0.0001
£10
GBP/USD 1.2700
$12.70
GBP/JPY
0.01
¥1,000
USD/JPY 150.00
$6.67
USD/ZAR
0.0001
R10
17.50
$0.57
XAUUSD (100 oz)
$0.10
$10
none
$10.00
Using pip value: profit and position size
Pip value has two main jobs.
1. Calculating profit or loss.P/L = pips gained or lost × pip value × lots
Example: 0.25 lot GBP/USD gains 40 pips in a euro account (EUR/USD 1.0850).
Pip value per lot in EUR = 10 ÷ 1.085 = €9.2166. Profit = 40 × 9.2166 × 0.25 = €92.17.
2. Sizing a trade from your risk.Lots = risk amount ÷ (stop in pips × pip value per lot)
Example: risk $30 with a 25-pip stop on USD/JPY at 150.00. 30 ÷ (25 × 6.6667) = 30 ÷ 166.67 = 0.18 lot (exactly, at this rate). Check: 0.18 × 25 × 6.667 = $30.00.
Why your platform's number can differ slightly from yours
If you compare your hand calculation with the profit your platform shows, small differences are normal. Three reasons:
1. Pip value drifts during the trade. On pairs where conversion is needed, the rate at closing, not at opening, sets the final number. Example: you sell 0.50 lot USD/JPY at 150.00 and buy back at 147.00, a 300-pip gain.
Using the opening pip value ($6.667 per lot): 300 × 6.667 × 0.50 = $1,000.00
What actually happens: profit is 3.00 × 50,000 = ¥150,000, converted at the closing rate 147.00 = $1,020.41
The $20.41 difference is because each yen became worth slightly more dollars as USD/JPY fell. On large moves, calculate the final profit from the closing rate.
2. Bid/ask. The broker converts at its own rate, often including a small markup, and longs close at the bid while shorts close at the ask.
3. Rounding. Platforms round to the cent at each step; spreadsheets often do not.
None of these change position sizing in a meaningful way for normal stop distances, but they explain why a trade "worth exactly $100" by your sums shows $99.40 or $101.10 in the account history.
A five-second mental check
Before trusting any calculator, sanity-check the order of magnitude:
Majors with USD second (EUR/USD, GBP/USD): about $10 per lot, $1 per mini, 10 cents per micro.
USD first or JPY crosses: somewhere between roughly $6 and $12 per lot.
USD/exotic (USD/ZAR, USD/TRY, USD/MXN): much less than $1 per lot per pip, because the quote currency is worth little per unit.
Kenyan shilling account, EUR/USD 0.10 lot: $1 × an illustrative USD/KES 129 = about KSh129 per pip.
If your number is ten or a hundred times off these ranges, you have probably used the wrong pip size or skipped a conversion.
Common mistakes
Using $10 for every pair. On USD/CHF at 0.88 it is $11.36; on USD/JPY at 150 it is $6.67. Assuming $10 misprices risk by up to 50% either way.
Confusing points and pips in MT4/MT5 order windows.
Forgetting the JPY pip is 0.01. Treating it as 0.0001 makes your calculation 100 times too small.
Skipping the account-currency conversion on a ZAR, NGN, KES or EUR account.
Mixing gold pip conventions between your calculator and your broker.
Using a stale rate. For crosses and non-USD accounts, pip value changes every time the conversion rate moves.
Whichever broker you use, check each symbol's specification (contract size, digits, tick value) in the platform. In MT5, the symbol specification lists a tick value and tick size; combined with your account currency, they are a useful cross-check for your own calculation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. Consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Full risk disclosure.
Frequently asked questions
How much is 1 pip worth?
For pairs quoted in US dollars, such as EUR/USD or GBP/USD, one pip is worth $10 on a standard lot (100,000 units), $1 on a mini lot and $0.10 on a micro lot, if your account is in dollars. For other pairs the value changes with the exchange rate, for example about $6.67 per lot on USD/JPY at 150. Your account currency also changes the final figure.
Why does pip value change on USD/JPY but not EUR/USD?
Pip value is always fixed in the quote currency. On EUR/USD the quote currency is the dollar, so a USD account sees a constant $10 per lot. On USD/JPY the pip is worth a fixed ¥1,000 per lot, and converting yen to dollars depends on the USD/JPY rate. When USD/JPY rises, each pip is worth fewer dollars; when it falls, each pip is worth more.
What is the difference between a pip and a pipette?
A pip is the standard unit of price movement: the fourth decimal (0.0001) for most pairs and the second decimal (0.01) for yen pairs. Most brokers quote one extra digit, called a pipette or point, equal to one-tenth of a pip. On MT4 and MT5, a stop of "100 points" on EUR/USD is therefore only 10 pips. Always check whether a tool or platform field expects pips or points.
How do I calculate pip value in my local currency?
Calculate pip value in the quote currency first, then convert. For EUR/USD the value is $10 per lot. In a rand account at USD/ZAR 17.50, that is 10 × 17.50 = R175. In a naira account at USD/NGN 1,500, it is ₦15,000. In a euro account at EUR/USD 1.0850, divide instead: 10 ÷ 1.085 = €9.22. Use live rates, as these figures are illustrative.
Does leverage affect pip value?
No. Pip value depends only on the pair, the trade size in units and exchange rates. Leverage affects how much margin is required to open the position. A 0.10 lot EUR/USD trade is worth $1 per pip whether you use 1:30 or 1:500 leverage. Higher leverage simply makes it possible to open larger positions, and larger positions have proportionally larger pip values.
How do I calculate pip value on gold?
Gold is usually 100 oz per standard lot and priced in dollars, so a $1 move is worth $100 per lot. If your broker treats $0.10 as a pip, one pip is $10 per lot; if it treats $0.01 as a pip, one pip is $1 per lot. The money per dollar of movement never changes, only the pip count. Check the contract size in your platform first.
