You can’t do the job without the right tools, and this one’s essential. The pip calculator shows the value of a pip in the currency you want to trade. You’ll always want to weigh the upside against the risk and plan how to manage that risk.
Find the true value of a pip
All about the pip calculator
Pip stands for price interest point or percentage in point.
This is the measure of movement in the exchange rate between the two currencies.
In most forex pairs, a pip is a movement in the fourth decimal place (0.0001), so it’s equivalent to 1/100 of 1%. In currencies like the Japanese Yen (JPY), a pip is quoted with two decimal places instead of four - so the second digit after the decimal point is the pip. Using these small units to measure price movement helps to protect you from losses.
If a pip was 10 basis points instead of one, a one-pip change would up the volatility in currency values. The actual value of a pip is calculated by multiplying the amount of the trade in lots by one pip in decimals, and then dividing it by the exchange rate of the quote currency in your pair.
As well as the standard pip, we also offer ‘fractional pip pricing’. This adds a fifth decimal place - so a fractional pip is one tenth of a pip. Fractional pips can give you tighter spreads, as well as a better idea of price changes.
What is a pip’s worth?
Still not sure what the true value of a pip is? Learn more by watching this short video.