What Is a Pip? How to Calculate Pip Value by Pair and Lot Size

Prices in forex move in tiny steps. Traders count those steps in pips. Once you know what one pip is worth, you know what a price move means for your money.

What is a pip?

A pip is the standard unit for measuring a price move in a currency pair. For most pairs, it is the fourth decimal place, or 0.0001.

The Exness Help Center puts it this way: "In most forex instruments, a pip represents a price change value at the 4th decimal place" (checked 3 Nov 2026).

Japanese yen pairs are different: one pip is the second decimal place, or 0.01. CME Group's FX Link pricing guide shows this when it lists a USD/JPY price step of 0.0001 as "0.01 pip" (checked 3 Nov 2026).

You can find the term in our glossary under pip.

How do I count pips?

To count pips, take the price change and divide it by the pip size. The pip size is 0.0001 for most pairs and 0.01 for yen pairs.

Two examples:

• EUR/USD moves from 1.11115 to 1.11135. The change is 0.0002, so that is 2 pips. This is the example the Exness Help Center uses.
• USD/JPY moves from 150.20 to 150.45. The change is 0.25, so that is 25 pips.

What is a pipette, or point?

A pipette is one tenth of a pip. Many trading platforms show prices with one extra decimal, so the last digit is a pipette.

Exness calls this unit a point and states that 1 pip = 10 points. So the 2-pip move above is 20 points.

Watch for this in your platform. A stop that is "50 points" away is only 5 pips. See pipette in our glossary.

How do I calculate pip value?

Pip value is what a one-pip move is worth for your trade. The Exness Help Center gives the formula: "Pip Value = Number of Lots x Contract size x Pip size."

The contract size is the amount of base currency in one lot. For forex, a standard lot "typically equals 100,000 units of the base currency", per the same page.

The result is in the quote currency. That is the second currency in the pair. If your account is in another currency, you convert the result.

Our pip value calculator does this for you. It can use your broker's contract sizes.

What is one pip worth on EUR/USD?

On EUR/USD, one pip is worth 10 USD per standard lot. The quote currency is USD, so no conversion is needed for a USD account.

New to lot sizes? Read What is a lot in forex?.

What is one pip worth on USD/JPY?

On USD/JPY, one pip is worth 1,000 JPY per standard lot. You then convert JPY to your account currency at the current rate.

Hypothetical example, with a made-up rate of 150.00 JPY per USD:

• 1 lot: 1 × 100,000 × 0.01 = 1,000 JPY. In USD: 1,000 ÷ 150.00 = about 6.67 USD.
• 0.1 lot: 100 JPY, or about 0.67 USD.

When the yen rate changes, the USD value of one pip changes too. The JPY value stays the same.

What about a pair without USD, like EUR/GBP?

For a pair like EUR/GBP, the pip value comes out in GBP. You convert it to USD with the GBP/USD rate.

Hypothetical example, with a made-up GBP/USD rate of 1.3000:

• 1 lot: 1 × 100,000 × 0.0001 = 10 GBP. In USD: 10 × 1.3000 = 13.00 USD.
• 0.1 lot: 1 GBP, or 1.30 USD.

Why does pip value matter for my costs?

Pip value turns a spread into money. A spread of 1 pip on 1 lot of EUR/USD costs you 10 USD when you open the trade.

The same idea gives you profit and loss. Exness writes it as: "Profit/Loss = difference of closing and opening price (in pips) x Pip Value".

Hypothetical example: you buy 0.2 lot of EUR/USD. One pip is worth 2 USD.

• If the price rises 25 pips, the trade makes 50 USD before costs.
• If it falls 40 pips, the trade loses 80 USD before costs.

Try your own numbers in the profit and loss calculator. To size a trade by risk, use the lot size calculator.

To compare what spreads and commissions cost on different accounts, read Spread vs commission.

What else do beginners ask about pips?

Is a pip always 0.0001? No. It is 0.0001 for most pairs and 0.01 for yen pairs. Gold and other instruments have their own sizes, so check your broker's contract specification.

Does leverage change pip value? No. Pip value depends on lot size, contract size and pip size. Leverage changes the margin you need, as our margin guide shows.

Why does my platform show a different pip value? Your platform uses live exchange rates and your broker's own specs. The terminal figure is the one that counts.

What is the short version?

A pip is the standard price step: 0.0001 for most pairs and 0.01 for yen pairs. Pip value = lots × contract size × pip size, in the quote currency.

Know your pip value before you trade. It tells you what a spread, a stop or a price move means in money. The pip value calculator works it out in seconds.