Pip value
Definition · Level 8 · Rates, FX & macro
Keep reading with Tradecraft
Without a subscription, you can read three definitions every 30 days. Tradecraft explains all 988 terms and strategies, with the lessons that teach them, flashcards that come back before you forget, quizzes and a payoff lab.
The money one pip is worth on a position, in the quote currency: lot size × pip size. Convert it to your own currency if the quote currency is different.
Example
USD/JPY, 1 standard lot: 100,000 × 0.01 = ¥1,000 a pip, about $6.67 at 150.00.
Rules and market figures change: check the current ones before relying on this.
Where Tradecraft teaches it
Level 8 · Rates, FX & macro, in the lesson “FX quotes, pips and lots”: Read a currency pair, count pips and size lots.
Related terms
- Base currencyThe first currency in an FX (foreign exchange) pair, the one being priced.
- Currency pairTwo currencies quoted against each other as BASE/QUOTE: the price is how many units of the second buy one unit of the first.
- EUR/USDThe most traded pair in the BIS (Bank for International Settlements) surveys, again in April 2025: the price of one euro in US dollars.
- Pip sizeThe standard foreign exchange (FX) price increment, a “pip”: 0.0001 (4th decimal) for most pairs, 0.01 (2nd decimal) for yen pairs.
- PipetteA tenth of a pip: the extra decimal place some brokers show (five decimals on EUR/USD, three on USD/JPY).
- Quote currencyThe second currency in a currency pair: the price is expressed in it, and pip values and P&L land in it until converted back.