What is a pip, and how do you calculate pip value?
A pip is a conventional unit for describing a forex price movement. For many currency pairs it is 0.0001; for many yen pairs it is 0.01. A fractional pip is a smaller quoted increment. OANDA explains pips and fractional pips.
How many pips did the price move?
Use: price difference ÷ pip size. In a hypothetical EUR/USD move from 1.0820 to 1.0835, the difference is 0.0015. Dividing by 0.0001 gives 15 pips. Direction determines whether that movement helps or hurts a position.
What is the monetary value?
For a simple spot-style forex calculation, units of base currency × pip size gives pip value in the quote currency. With 10,000 EUR and a USD 0.0001 pip size, one pip is USD 1. A 15-pip movement therefore has a gross value of USD 15 before costs. With 20,000 EUR, the same movement has twice that value.
When do I need a conversion?
If the quote currency differs from the account currency, convert the result using the applicable exchange rate. For example, a hypothetical JPY 1,000 result converted at JPY 150 per USD is about USD 6.67. The conversion rate is an assumption, not a current quote.
Check the symbol's actual contract settings. A platform point or tick is not automatically one pip. Compare lot size and spread costs before interpreting a price move as profit or loss.
Educational information only. Examples exclude costs unless stated and do not describe a recommended trade or guaranteed outcome.