Forex Pip Calculator

This pip calculator answers a simple question: if the rate moves by one pip, how many dollars does my position gain or lose? Choose a pair, enter the current price and a position size in lots, and the result updates as you type. For cross pairs, where neither currency is the US dollar, it asks for one extra rate so it can convert the answer into dollars.

The formula

The pip size is 0.0001 for most pairs and 0.01 for pairs that include the Japanese yen. For gold, a lot is usually 100 ounces and the calculator treats $0.01 as one pip. When the US dollar is the quote currency, as in EUR/USD, no conversion is needed. When the dollar is the base currency, as in USD/JPY, you divide by the exchange rate.

Worked examples

These numbers are illustrative.

• EUR/USD, 2 lots: 2 × 100,000 × 0.0001 = $20 per pip.
• USD/JPY at 150.00, 0.5 lots: 0.5 × 100,000 × 0.01 = 500 yen per pip; 500 ÷ 150 = about $3.33 per pip.
• Gold, 0.2 lots: 0.2 × 100 oz × $0.01 = $0.20 per pip, so a $1 move in the gold price (100 pips) is worth $20.

How to read the result

Multiply the pip value by the distance to your stop-loss to see what you stand to lose if it is hit. With the EUR/USD example above, a 25-pip stop would mean 25 × $20 = $500 at risk, before costs. If that figure is uncomfortable, the position is too large; the position size calculator works backwards from the risk you choose.

Remember that pip values on pairs quoted in other currencies change slightly as exchange rates move, and that the result leaves out spreads, commission and overnight financing, covered in the trading fees lesson.