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What is pips?

What is pips?

Answer:- In currency pair, small unit change in quote price. that is pips.

Most of currency pair having 4th decimal place is equal to 1 pip and some of currency pair having 2 decimal place is equal to 1 pip. Some of brokers also having the currency pairs unit show 5 and 3 decimal places .


EUR/USD –market price is bid and ask price EUR/USD=1.1722,it means 1EUR value is 1.1722USD.suppose after 1 day prices changes EUR/USD=1.1725,it means 1EUR is value is 1.1725

Price changes from 1.1722 to 1.1725 ,it means 0.0002 – 0.0005= 3pips

Real market trading ,you should calculate the pips value, I mention general formula for calculating the pip value, use this formula and you evaluate any currency pair pip value.

To find out the Pip formula/calculator= (pip in decimal place *trade size)/market price

Note: you can get trade size ,while trading for standard lot-unit 100,000 and mini lot-unit 10,000 and micro lot-unit 1000


For standard 1-lot

For EUR/USD=1.1722

1pip=( 0.0001*100000)/1.1722

=$8.53 nearest equal to $10

You can get in every currency pairs pip value by using my given formula.

Thank you

1 Comment

  1. Hester says:

    I spent a lot of time to find something similar to this

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