Calculate Pip Value
Used for reference only - pip value is generally constant
Pip Value Results
Value of 1 pip for 1 lot(s) of EURUSD
4th decimal place
Units of EUR
Currency Pair Info
Movement Examples
What is a Pip in Forex?
A pip — short for “percentage in point” or “price interest point” — is the standardised unit used to measure price movement in the foreign exchange market. For the vast majority of currency pairs, one pip equals 0.0001, which is the fourth decimal place of the quoted price. If EUR/USD moves from 1.1000 to 1.1001, that one-unit movement is exactly one pip.
The exception is any pair that involves the Japanese yen as the quote currency (e.g. USD/JPY, EUR/JPY, GBP/JPY). Because the yen trades at a significantly lower unit value than most other currencies, these pairs are quoted to only two decimal places and one pip equals 0.01. If USD/JPY moves from 142.50 to 142.51, that is one pip.
Many brokers now quote to a fifth decimal place (or third for JPY pairs). These fractional units are called pipettes or fractional pips and equal one-tenth of a full pip. Our calculator works with standard pip values so you always get a clean, comparable figure.
How to Calculate Pip Value
The monetary value of one pip depends on three variables: the currency pair being traded, the lot size (position size), and the exchange rate of the quote currency against your account currency. The core formula is:
Worked example — EUR/USD standard lot: Assume EUR/USD is trading at 1.1000. The pip size is 0.0001. A standard lot is 100,000 units of the base currency.
Because EUR/USD’s quote currency (USD) matches the typical account currency of most traders, the result rounds to roughly $10 per pip at most typical price levels — which is the figure you will see quoted widely in forex education.
South African traders — USD/ZAR example: If you trade USD/ZAR at a rate of 18.50 with a standard lot, the pip size is 0.0001. Pip value in ZAR = (0.0001 ÷ 18.50) × 100,000 = R0.54 per pip. Because USD/ZAR has the rand as the quote currency, one pip of a standard lot equals just over fifty cents per pip in rand terms — worth knowing when sizing positions.
Pip Value by Lot Size
The table below shows approximate pip values in USD for EUR/USD at a price of 1.1000 across the four standard lot sizes. Use these as quick reference figures when planning your risk per trade.
| Lot Type | Units | EUR/USD Pip Value (USD) |
|---|---|---|
| Standard | 100,000 | ~$10.00 |
| Mini | 10,000 | ~$1.00 |
| Micro | 1,000 | ~$0.10 |
| Nano | 100 | ~$0.01 |
Values are approximate and change slightly with the exchange rate. Use the calculator above for precise figures.
Why Pip Value Matters for Risk Management
Pip value is the bridge between price movement and actual money at risk. Without knowing your pip value you cannot size a position correctly, and position sizing is the single most important variable in long-term trading survival.
The standard risk-management guideline is to risk no more than 1--2% of your account on any single trade. To apply this in practice you need to know: (1) where your stop-loss will be placed in pips, and (2) the value of each pip in your account currency. Multiply those two figures to get your maximum allowable position size.
Example: You have a $5,000 account and are willing to risk 1% ($50) on a trade. Your stop-loss is 20 pips away. Pip value needed per pip = $50 ÷ 20 = $2.50. Since a mini lot of EUR/USD gives ~$1.00 per pip, you would trade 2.5 mini lots (or 0.25 standard lots) to stay within your risk limit.
Traders who skip this calculation and trade a fixed lot size regardless of stop-loss distance will find their actual risk fluctuates widely between trades — a recipe for account blow-ups on the outlier losses. Use this pip calculator before every trade to stay consistent.
Frequently Asked Questions
What is a pip in forex trading?
A pip (percentage in point) is the smallest standardised price move in a currency pair. For most pairs it is 0.0001 — the fourth decimal place. For Japanese yen pairs (e.g. USD/JPY) a pip is 0.01, the second decimal place, because the yen trades at a much lower unit value.
How do I calculate pip value?
Pip value = (pip size ÷ exchange rate) × lot size × contract size. For EUR/USD with a standard lot (100,000 units) the calculation is (0.0001 ÷ 1.1000) × 100,000 = $9.09, which rounds to $10 per pip when the quote currency is USD.
Why is pip value different for JPY pairs?
The Japanese yen has a much lower unit value than most major currencies, so brokers price JPY pairs to only two decimal places. The pip size for any JPY pair is 0.01 instead of 0.0001, which changes the pip value calculation accordingly.
What lot sizes are available in forex?
There are four standard lot sizes: a standard lot (100,000 units), a mini lot (10,000 units), a micro lot (1,000 units), and a nano lot (100 units). Smaller lot sizes let you trade with lower capital and tighter risk management.
Which brokers offer the lowest spreads for South African traders?
Brokers such as Exness and FP Markets are well regarded for tight spreads on major pairs, with raw spreads starting near 0.0 pips on ECN/Raw accounts. Always verify current spreads on the broker's live pricing page.
Find a Broker with Low Spreads
A tighter spread means fewer pips needed just to break even on a trade. If you are trading with high frequency or scalping, every tenth of a pip matters. Compare brokers that are known for competitive spreads: