What is a pip?
A pip is the standard unit of price movement in forex. For most pairs it is the fourth decimal place, 0.0001. For pairs that end in Japanese yen it is the second decimal, 0.01. Many brokers quote one more digit, a fractional pip or "pipette", which is one tenth of a pip.
Gold and silver have no official pip, so brokers use their own convention. This calculator uses the most common one: 0.10 for gold (XAU/USD) with 100 ounces per lot, and 0.01 for silver (XAG/USD) with 5,000 ounces per lot.
The pip value formula
Pip value = Lot size × Contract size × Pip size
The result is in the quote currency, the second currency of the pair. If your account is in a different currency, it is converted at the current exchange rate.
| Pair | Pip size | Pip value per standard lot |
|---|---|---|
| EUR/USD, GBP/USD, AUD/USD | 0.0001 | $10 |
| USD/JPY | 0.01 | ¥1,000 (about $6 to $7) |
| USD/CHF | 0.0001 | CHF 10 |
| EUR/GBP | 0.0001 | £10 |
| XAU/USD (gold) | 0.10 | $10 |
Whenever USD is the second currency and your account is in dollars, one pip on one standard lot is always $10. That is why EUR/USD and GBP/USD are the easiest pairs to size by hand.
Why pip value changes
For pairs where the quote currency is not your account currency, the pip value moves with the exchange rate. When the yen weakens, a pip on USD/JPY is worth fewer dollars; when it strengthens, more. That is why a fixed "10 pips = $100" rule only works on some pairs. Use the position size calculator to turn your risk into a lot size automatically.
Frequently asked questions
How much is 1 pip on 0.01 lots?
On a pair quoted in US dollars, such as EUR/USD, 0.01 lots (a micro lot) is worth $0.10 per pip. On other pairs it depends on the exchange rate; enter 0.01 in the lot size box to see it.
What is the difference between a pip and a point?
Many platforms show five decimals on most pairs. The last digit is a point or pipette, one tenth of a pip. A move from 1.08500 to 1.08510 is 10 points but only 1 pip.
How is a pip on gold calculated?
With the common 0.10 pip size and a 100-ounce contract, each pip is worth $10 per lot. A $1.00 move in the gold price is therefore 10 pips, or $100 per lot.
Results are estimates for education and planning. Broker contract sizes, fees and margin rules differ, so always confirm on your platform before you trade.