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What Is a Pip / Point Value in Trading?

Learn how pip values are calculated in forex and how point value affects your trading profits and risks.

A pip is the smallest quoted price change for most currency pairs; its dollar value depends on lot size and the instrument.

For most major forex pairs, a pip = 0.0001. For JPY pairs a pip = 0.01.

Lot size examples:

  • Standard lot (100,000 units): EURUSD pip value = 0.0001 × 100,000 = $10 per pip
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  • Mini lot (10,000 units): 0.0001 × 10,000 = $1 per pip
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  • Micro lot (1,000 units): 0.0001 × 1,000 = $0.10 per pip
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  • JPY pair (standard lot): 0.01 × 100,000 = 1,000 JPY per pip (convert to USD)
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Always check your platform’s contract specification for exact sizing and currency conversions if your account currency is not USD.

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