Forex pip value refers to the amount of money we gain/lose for each pip we gain or lose in currency trading. This is different with ‘1 pip definition’ I wrote before, so please don’t confuse both terms. In this article I’d like to explain how to find out forex pip value for any currency pair.

The easiest way to find out pip value of a currency pair is by observing how much money you gain/lose for each pip you gain/lose when you are in-trading. No matter what your trading platform is. In metatrader, this kind of data are shown within ‘trades’ tabs in a column entitled with ‘Profit’. Some forex brokers provide the information particularly. For example, you can find pip value for each currency pair within FXCM’s dealing rates window.

The above picture was captured from “trades” tabs within metatrader4 windows. It shows report for 1 lot (USD 100,000 trade’s size) sell order on gbp/usd. The red-circled part, ‘Profit’ column, shows USD 260 profit for 26 pip (from 1.7164 to 1.7138). That means pip value for this trade is 10 US dollar.

That is the practical way. Now let me continue with manual calculation. To do manual calculation you need to know what ‘1 pip’ is for related currency pair. In case you don’t understand what I mean with ‘1 pip’ here, please read this forex pip article. Below are the formula to calculate pip value:

For pairs with USD as the quote currency (e.g EUR/USD)
Pip Value = 1 pip x Trade Size

For an example, let’s take EUR/USD with 4 decimal points price quote (e.g 1.3633).

If you trade 1 lot (1 standard lot, equal to USD 100,000 trade size), the pip value will be:
Pip Value = 0.0001 x 100,000 = 10 (US Dollar)

If you trade 0.1 lot (1 mini lot, equal to USD 10,000 trade size), the pip value will be:
Pip Value = 0.0001 x 10,000 = 1 (US Dollar)

If you trade 0.01 lot (1 micro lot, equal to USD 1,000 trade size), the pip value will be:
Pip Value = 0.0001 x 1,000 = 0.1 (US Dollar)

For pairs with USD as the base currency (e.g USD/CAD)
Pip Value = 1 pip x Trade Size/ Current Price

For an example, let’s take USD/CAD with 4 decimal points price quote and current price is 1.711.

If you trade 1 lot (1 standard lot, equal to USD 100,000 trade size), the pip value will be:
Pip Value = 0.0001 x 100,000 / 1.1711 = 8.54 (US Dollar)

If you trade 0.1 lot (1 mini lot, equal to USD 10,000 trade size), the pip value will be:
Pip Value = 0.0001 x 10,000 / 1.1711 = 0.854 (US Dollar)

If you trade 0.01 lot (1 micro lot, equal to USD 1,000 trade size), the pip value will be:
Pip Value = 0.0001 x 1,000 / 1.1711 = 0.0854 (US Dollar)

For Cross Currency (e.g EUR/GBP)
Pip value = 1 pip x trade size x Current Price of Quote Currency

Let’s take EUR/GBP with 4 decimal points price quote. The ‘Current Price of Quote Currency” should be taken from GBP/USD price. Say that GBP/USD price is 1.7258.

If you trade 1 lot (1 standard lot, equal to USD 100,000 trade size), the pip value will be:
Pip Value = 0.0001 x 100,000 x 1.7258 = 17.25 (US Dollar)

If you trade 0.1 lot (1 mini lot, equal to USD 10,000 trade size), the pip value will be:
Pip Value = 0.0001 x 10,000 / 1.1711 = 1.725 (US Dollar)

If you trade 0.01 lot (1 micro lot, equal to USD 1,000 trade size), the pip value will be:
Pip Value = 0.0001 x 1,000 / 1.1711 = 0.1725 (US Dollar)

If a currency doesn’t have xxx/USD form or your broker doesn’t offer xxx/USD form for currency you are willing to calculate, you should use 1/(USD/xxx) for The ‘Current Price of Quote Currency’.  Take GBP/JPY for example, the calculation of pip value for this pair will be as follow:

Assuming your broker use 2 decimal points for GBP/JPY and current USD/JPY price is 100.40
Pip Value = 0.01 x 100,000 x 1/100.40 = 9.96 (USD)