What is a pip, and how do I work out the pip value for EURUSD?
I see pips mentioned everywhere. How is a pip measured, and how much money is one pip worth?
For education only. This is not financial advice. Trading carries a high risk of loss.
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1 Answer
Best answer
A pip is the standard small step in a price. For most pairs it is the fourth decimal place, 0.0001. For pairs with the Japanese yen it is the second decimal place, 0.01.
For a pair like EURUSD, where the US dollar is the second currency, the value of one pip is easy:
- 1 standard lot (100,000 units): about $10 per pip
- 1 mini lot (10,000 units): about $1 per pip
- 1 micro lot (1,000 units): about $0.10 per pip
For other pairs the pip value is converted into your account currency, so it changes a little with the price. Most platforms show it, or you can use a pip value calculator.
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