Pip value is the dollar amount you gain or lose when a pair moves one pip. On a standard lot of a USD-quoted pair it is $10, but it changes with the pair, the quote currency, and your lot size. Get this number first - everything from position size to profit depends on it.
For USD-quoted pairs the price does not affect pip value. When USD is the base currency (USD/CAD, USD/CHF, USD/JPY), the current rate is needed to convert the pip back into dollars.
How pip value is worked out
One pip is the smallest standard price increment - 0.0001 on most pairs, 0.01 on yen pairs. Multiply that by the contract size and your lots:
Pip value = lots x contract size x pip size
A standard lot is 100,000 units, so on EUR/USD that is 100,000 x 0.0001 = $10 per pip. Because the quote currency is USD, no conversion is needed. On a pair where USD is the base - like USD/CAD - the raw result is in the quote currency, so it is divided by the current rate to bring it back to dollars.
Why the number keeps changing
Three things move pip value: lot size (it scales directly), the pip size (yen pairs use 0.01), and the quote currency (a non-USD quote needs converting). This is why the same 30-pip stop can cost $300 on one pair and a different amount on another. The concept is covered fully in how to calculate pip value and what is a pip.
Use this first: the pip value you get here is the figure to paste into the position size calculator. Sizing a position without the right pip value quietly throws your risk off by the exact percentage the pip value is wrong.
See it live in the simulator
Reading that a pip is worth $10 is one thing; watching $10 move on your balance with every pip as a trade runs makes it stick. Backtesting bar by bar shows pip value in motion so the number stops being abstract.
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Pip value calculator FAQ
How much is one pip worth in forex?
On a standard lot (100,000 units) of a USD-quoted pair like EUR/USD, one pip is worth $10. On a mini lot it is $1, and on a micro lot it is $0.10. For pairs quoted in another currency the value must be converted back to dollars at the current rate.
Why is pip value different on USD/JPY?
Yen pairs measure a pip as 0.01 rather than 0.0001, and the quote currency is the yen, not the dollar. So the raw pip value is 100,000 x 0.01 = 1,000 yen per lot, which is then divided by the USD/JPY rate to express it in dollars - typically around $6 to $9 per pip.
Does pip value change with price?
For pairs quoted in USD, no - it stays fixed regardless of the rate. For pairs where USD is the base currency, yes - the pip value moves slightly as the exchange rate changes because the conversion back to dollars uses the current price.