PIP VALUE CALCULATOR

How pip value is calculated

A pip is a unit of distance, not money. It only becomes money once you attach a lot size to it. The formula is the same for every instrument:

Pip value = pip size × contract size × lots (divided by the current price when the US dollar is the base currency, as in USDJPY or USDCAD).

• Majors like EURUSD — pip size 0.0001, contract 100,000 units, so one standard lot is $10 per pip and 0.10 lots is $1 per pip.
• JPY pairs — pip size 0.01. Because the dollar is the base currency, pip value moves with price, which is why the calculator asks for it.
• XAUUSD (gold) — one standard lot is 100 ounces. Treating a $0.10 move as one pip gives $10 per pip per standard lot. Many brokers instead quote gold in points of $0.01, which is $1 per point.

Why traders get gold pips wrong

Nearly every gold mistake comes from mixing the two conventions above. A 300-"pip" gold move is a $30 move if you use $0.10 pips, but only a $3 move if your platform counts $0.01 points. Check what a 1.00 lot trade does to your equity when price moves $1 — if it changes by $100, you are on the 100-ounce standard contract.

What to do with the number

Pip value is the bridge between your stop-loss and your risk. Once you know what one pip costs you, the lot size calculator turns a fixed rupee or dollar risk into the exact position size. Read the pip guide and the gold pip guide in our free learn section for the full worked examples.

Trading forex and gold carries a high risk of loss. This calculator is an education tool, not advice, and it excludes spread, commission and swap.