Pip Value Calculator helps traders determine the monetary value of each pip movement in a trade. This is crucial for understanding the impact of price changes on your positions and managing risk effectively.

 

 

Key Elements

  • Trade Size (Lot): The number of units being traded (e.g., 1 lot = 100,000 units).
  • Currency Pair: Determines the pip value based on the exchange rate and base currency.
  • Exchange Rate: The current market rate for the currency pair.
  • Account Currency: The currency in which your account is denominated.

Formula

Pip Value = (One Pip / Exchange Rate) × Lot Size × Exchange Rate to Account Currency

Example

Currency Pair: EUR/USD

Lot Size: 1 lot (100,000 units)

Exchange Rate: 1.2000

Calculation:

Pip Value = (0.0001 / 1.2000) × 100,000 × 1

Result: $8.33 per pip

This calculator ensures you understand the value of pip movements in your trades, enabling better decision-making and risk management.