Pip value

Converts a pip into cash for the size you are trading, at several stop scales. Use it before sizing a forex trade.

A pip is the standard unit of price movement in currency trading. On most pairs it is the fourth decimal place, 0.0001, so a move from 1.0850 to 1.0851 is one pip. On pairs quoted against the Japanese yen it is the second decimal, 0.01, because those pairs trade at very different price levels. Getting the pip size wrong by a factor of a hundred is the classic beginner error and it makes every downstream risk figure wrong by the same factor.

Pip value depends on three things: the size of a pip, how many units you hold, and the rate that converts the result back into your account currency. The quote rate field handles that last conversion. When the pair is already quoted in your account currency, leave it at one. When it is not, the pip value moves as that rate moves, which means the cash risk on an open position drifts slightly even when nothing else changes.

The ten pip and hundred pip rows exist because those are the scales people actually plan at. A scalp might risk ten pips, an intraday trade thirty to fifty, a swing trade a hundred or more. Seeing the cash value at each scale makes it immediately clear whether the size you have in mind is compatible with the stop you have in mind, before you get as far as the order ticket.

The per standard lot row is the number to carry across to the lot size calculator. That calculator asks for pip value per standard lot, and this is where it comes from. Working out the two together, pip value first and lot size second, is the reliable order and it removes the guesswork of assuming ten units per pip on every pair.