How this number is made
A pip is the price step you care about, usually 0.0001, or 0.01 when the quote currency is the yen. On a pair quoted in dollars, the pip’s dollar value is the pip size times the units. On a pair quoted in another currency, that amount is still in the quote currency, so this page divides by the pair price to state it in dollars. A 100,000 unit position is one standard lot.
- EURUSD is “yes”: the quote is dollars.
- USDJPY is “no”: divide by the price. Use a pip size of 0.01 for yen.
Formula
If the quote is dollars, pip value = units × pip size. If not, pip value = units × pip size ÷ price.
Worked example
With the figures already in the form, one pip, in dollars is $10.00.
Questions
What is a micro lot?
Often 1,000 units. Type 1000. The page does not assume a lot size.
Does this include the spread?
No. The spread is a cost in pips on the way in. Add it yourself.