Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Follow us on Facebook

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE - In Google Play

View

Lesson 10. Calculating value of a pip

In order to calculate the value of one pip in a currency pair, you have to multiply the amount of your trade in lots by one pip in a decimal form (0…

In order to calculate the value of one pip in a currency pair, you have to multiply the amount of your trade in lots by one pip in a decimal form (0.0001 or 0.01), and then divide it by the current exchange rate of the quote currency to the US Dollar.

Lot is given in units of our base currency.

You should remember that the US Dollar is a quote currency in many pairs (EUR/USD, GBP/USD etc.). It means that the exchange rate of the quote currency to USD equals to 1.

For such pairs one pip will always cost $10 when we trade a 100 000-unit contract or 1 standard lot.

For the pairs where the US Dollar is a base currency (USD/CHF, USD/CAD), pip value depends on the exchange rate.

For the pairs that include the Japanese yen the pip value is calculated as follows.

Choose your payment system

Learn more