What are Pips in Forex? – Pip Value Calculator

In this Post, I will give you a brief information about what are pips in Forex? And also teach you how to calculate pip value? It is very important for newbies to understand what pips exactly are? and how we can measure the pip value? Please take a look at below to learn more. The Pip stands for = “price interest point.” A pip calculates the number of movement of the market price rate on a forex currencies. Forex market currencies shown 4 decimal digits and some Brokers offer 5 Digits, 1 pip is just the same as 0.0001.

Example: EURUSD Current Price 1.0658 then Market move down until 1.0657.
So, Current Price  1.0658
Move down until    1.0657
Difference         0.0001<=== One PIP
so, the minimum price movement of the market is called PIP, OR the difference of the 4th decimal number of the market is called PIP
                        OR
So, Current Price  1.0658
Move down until    1.0655
Difference         0.0003<=== Three PIPS

If broker offer Five decimal numbers like 1.06588in this Condition, it will be like this,
So, Current Price   1.06588
Move down until     1.06587
Difference        0.00001<=== One Point not one PIP, one PIP is always 4th decimal number and movement of 5th decimal number is always called point.
So, Current Price  1.06588
Move down until    1.06577
Difference:        0.00011<=== the first ‘1’ is One POINT and another ‘1’ is 1 pip.
The yen-based pair of currencies has the different, as they are shown just 2 decimal points (0.01). Many Forex Brokers currently provide fractional pips to give an additional point of detail when quoting forex market prices for the specific pair of currencies. A fractional pip is equal to 1/10 of a pip.
Example:
So, Current Price  1.022
Move down until    1.033
Difference         0.011<=== first ‘1’ is One POINT and another ‘1’ is 1 PIP

How to Calculate Pip Value in Forex?

Now it’s time to show you how to calculate pip value in forex. 
Formula: Per Pip Value = Lot X Contract Size X Minimum Fluctuation Price of the Pair
You can get the Minimum Fluctuation Price for all pairs from the broker you trade with.

For Standard Account:

Value of 1 pip in EUR/USD = 1 Lot (100 000 €) X 0.0001= 10 USD
Value of 1 pip in USD/CHF= 1 Lot (100 000$) X 0.0001= 10 CHF
Value of 1 pip in EUR/JPY=1 Lot (100 000 €) X 0.01= 1000 JPY
Answer is always in Quote currency means 2nd Currency of the pair
For Micro or Mini Account just need to change the Contract Size only.

All Contract Sizes:

Standard Account Contract size    > 100,000
Mini Account Contract size    > 10,000
Micro account Contract size    > 1,000

FINAL WORDS:

If you still are unable to Calculate the Forex PIP Value, then please go ahead and ask for a help on the comment section below, FXForever aim is to provide you the Free Forex Training. So, we love to reply our users.

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