What Is a Pip in Forex? Pip Value, Lot Size and Real Examples
A pip is the smallest price move in a currency pair. Here is what it means, how it is calculated, and how much one pip is worth.
Definition
A pip ("percentage in point") is the fourth decimal in most currency pairs (0.0001) or the second decimal in JPY pairs (0.01).
Pip Value Formula
Pip value (quote currency) = pip size × lot size (units)
For 1 standard lot (100,000 units) of EUR/USD: 0.0001 × 100,000 = $10 per pip.
Try the Calculator
Use the pip calculator to compute pip values across pairs and lot sizes in your account currency.
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