Calculate Forex pip value

What is a pip ?

A pip in Forex is the minimum price movement of a currency pair.
For example, in the JPYUSD it is 0.01 and in the GBPUSD it is 0.0001. A pip is then worth $10, $1 or $0.1, depending on the size of lots you trade:

Lot size	Name	Pip value
$100,000	standard	$10
$10,000	mini	$1
$1,000	micro	$0.1

This is okay for cross rates that are against the US$ (US$ base currency), but what if your trading account is based in US$ and you wish to trade, for example, the GBPJPY? How do you know what a pip is worth in US$ when you are trading a cross rate that does not have its base currency in US$. That is where things get more complicated!

You must convert the base currency - the second currency in your cross rate - JPY in our GBPJPY example, back into US$. To do this, you use the current USDJPY rate. This is where the Pip Value Calculator (below) helps.

Pip Value Calculator

First, select your trading Account currency (normally US$); then, choose your Currency pair; then, input your Lot size (100,000, 10,000 or 1,000); then, if asked, input the required Current price; finally, click the Calculate button.