Our pip value calculator will tell you the value of a pip in the currency you want to trade in. This information is crucial in determining if a trade is worth the risk, and in managing that risk appropriately.
The value of a pip is calculated by multiplying the amount of the trade in lots by one pip in decimal form, and then dividing it by the current exchange rate of the quote currency in your pair.
‘Pip’ stands for ‘point in percentage’. It’s the measure of movement in the exchange rate between the two currencies.
In addition to the standard pip, most forex brokers also offer ‘fractional pip pricing’. This adds a fifth decimal place, so a fractional pip is one tenth of a pip. Fractional pips can allow for tighter spreads, and give a better understanding of a currency price’s movements.