Currency & Forex
Intermediate

Pip Value

The monetary value of a one-pip move for a given trade size.

Formula

Pip Value=Pip SizeRate×LotPip\ Value = \dfrac{Pip\ Size}{Rate}\times Lot

Variables

Pip Size0.0001 for most pairs
RateExchange rate
LotPosition size

Example

100k lot EUR/USD: ≈ $10 per pip

Did You Know?

For yen pairs a pip is 0.01, not 0.0001, because the yen is quoted to only two decimal places.

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