ZAforexPip value calculator
What is a pip?
A pip ("percentage in point") is the standard unit for measuring a change in an exchange rate. For most pairs a pip is the fourth decimal place (0.0001). For pairs quoted in Japanese yen, like USD/JPY, it is the second decimal place (0.01). Brokers often show an extra digit, a pipette (one-tenth of a pip).
How to calculate pips
- Count the pips: subtract the entry price from the exit price and divide by the pip size. EUR/USD from 1.1000 to 1.1050 = 0.0050 ÷ 0.0001 = 50 pips.
- Pip value in the quote currency = pip size × units traded. One standard lot is 100,000 units, so one pip on EUR/USD = 0.0001 × 100,000 = $10.
- Convert to your account currency. If your account is in rand, multiply by USD/ZAR. The calculator does this with the live rate.
| Lot type | Units | Pip value on EUR/USD | Pip value on USD/ZAR |
|---|---|---|---|
| Standard (1.00) | 100,000 | $10 | R10 |
| Mini (0.10) | 10,000 | $1 | R1 |
| Micro (0.01) | 1,000 | $0.10 | R0.10 |
Pips on gold (XAUUSD)
Gold is usually traded in lots of 100 ounces, with a minimum move of $0.01. A $1 move on one lot is worth $100. Brokers disagree on what to call a "pip" on gold, so set the calculator to XAUUSD and compare it with your broker's contract specification.
Frequently asked questions
How much is 1 pip worth?
On a standard lot of a USD-quoted pair like EUR/USD, one pip is $10. On a mini lot it is $1 and on a micro lot $0.10. Use the calculator for other pairs and rand accounts.
How do I calculate pips in forex?
(Exit price − entry price) ÷ pip size. The pip size is 0.0001 for most pairs and 0.01 for JPY pairs.
How much is a pip on USD/ZAR?
One pip (0.0001) on a standard lot of USD/ZAR is R10, because the quote currency is the rand.