Forex Pip Value Calculator
Calculate cash value per pip across standard, mini, and micro lots in local account currency.
How the Calculation Works
Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.
Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.
Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.
Calculation Formula
Example Calculation
1 Standard Lot (100,000 units) on EUR/USD (0.0001 pip) with USD/INR at 85.50.
A 1-pip move on 1 standard lot produces a $10 quote variance. Converting at 85.50 yields ₹855.00 INR per pip.
Assumptions & Parameters
- Calculation reflects pure pip valuation; broker spreads and liquidity slippage are excluded.
Frequently Asked Questions
What is a pip in Forex trading?
A pip (percentage in point) is the standard unit measuring the smallest price move in a currency pair, usually 0.0001.
Why is pip size different for Japanese Yen (JPY) pairs?
JPY pairs are quoted to two decimal places, meaning a pip equals 0.01 rather than 0.0001.
What is the pip value of 1 standard lot on EUR/USD?
For 1 standard lot (100,000 units), 1 pip equals exactly $10 USD in quote currency.
What is a mini lot and micro lot?
A mini lot is 10,000 units ($1/pip), and a micro lot is 1,000 units ($0.10/pip).
Why does the exchange rate affect pip value?
If your account currency differs from the pair's quote currency, the dollar pip value must be converted using the active exchange rate.
How do I use pip value for position sizing?
Divide your maximum allowable rupee risk by (Stop-loss distance in pips multiplied by pip value per lot).