Pip Value Calculator

What is a PIP?

A PIP is a unit of measurement used to express the change in value between two currencies. All PIP movements are nearly denoted with four decimal places e.g. EUR/USD moving from 1.1234 to 1.1235 to explain a 1 pip movement.

Why is it important to know how to calculate PIPS?

Knowing how to calculate pips is key in determining profit and loss margins per traded asset. Calculating PIPs before picking a Forex position size is necessary in spreading your risks. But, perhaps the most important reason for calculating PIPs beforehand is to manage those risks. And to draw your subtle line between investing for profits and investing for fun and ending ip making loses.

How to use a PIP value calculator

But,

Is calculating the value of a PIP easy? Have you tried doing it before? Is it scary and time consuming?

It is?

Well, that is why we are introducing the PIP value calculator tool on Joon.

  1. To help you calculate PIP conveniently
  2. To help you calculate the value of a pip in the currency you want to trade in
  3. And for the benefit of helping you determine if investing in a trade is worth the risk.

PIP Value Calculator 

How to Use The PIP Value Calculator Tool

All you need to do is to: – select the pip amount that you need to calculate, your currency pair of interest, your trade size (lot) and your deposit currency.

The Calculation is Performed as Follows

PIP Value = (1 PIP / Exchange rate) * Lot Size 

  • 1 Pip = 0.0001
  • Currency pair: – EUR/USD
  • Trade size/Lot size : -1 Lot (100000 EUR)
  • Deposit currency: – EUR
  • Pip Value = 0.0001 / 1.08962 * 100000

Each Pip is worth €9.18

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Trading information on this site is not intended for distribution or use by any person in a country where Forex or Options trading is prohibited by law. If you live in the US, Israel, Australia, Canada, Turkey, Japan, Belgium, Latvia, France or New Zealand, try other ways to make money on our site but Forex and Options trading.