In order to manage your risk more effectively, it is important to know the pip value of each position in the currency your trading account is denominated in. Forex Pip Value Calculator does this for you. Simply enter your trade size, the currency pair you are trading, and your account currency; finally click ‘calculate’ to determine how much each pip is worth. Keep in mind that Forex quotes its prices to five decimal places and three on JPY pairs.

The calculation is performed as follows:

Pip value = (one pip / exchange rate) * lot size

Example:

• Trading 1 lot of EUR/USD with an account denominated in EUR.
• One pip = 0.0001
• Exchange rate = 1.35554
• 0.00001/1.35554 = 7.37713
• 7.37713 * 1 = 7.37713
• Each pip is worth €7.38

This figure will need to be converted into your account currency if it is different. Forex Pip Value Calculator automatically does this for you.