Pip Calculator
What is a Pip?
A point in Forex trading is referred
to as a "pip". It is the last decimal place of a price quote.
Currency pairs are usually traded in
standard Lots, which are equivalent to 100,000 units of the top currency in a pair.
For example, 1 Lot of GBP/USD is eqivalant to 100,000 pounds. Standard lots can
be traded in “mini” versions (0.1) and are equivalent to 10,000 units of the top
currency pair.
Since the currency that is on the top
of the price quote changes, i.e. 1 Lot of GBP/USD (100,000 Pounds) is worth more
than 1 Lot of USD/CAD (100,000 Dollars), the value of a pip changes. Also, the size
of a position will affect how much each pip is worth.
You can use our Pip Calculator to easily
figure out how much each pip is worth for any pair, or size position