Key takeaways
- A pip is the fourth decimal place on most pairs and the second on yen pairs.
- Pip value = pip size × position size, converted into your account currency.
- Gold and indices use points rather than pips; check each contract's specification.
Quick reference: pip value in USD
| Pair type | Example | 1 lot | 0.1 lot | 0.01 lot |
|---|---|---|---|---|
| xxx/USD | EUR/USD, GBP/USD | $10.00 | $1.00 | $0.10 |
| USD/JPY at 150 | USD/JPY | $6.67 | $0.67 | $0.07 |
| USD/xxx at 1.3500 | USD/CAD | $7.41 | $0.74 | $0.07 |
| Cross (EUR/GBP, GBP/USD at 1.27) | EUR/GBP | $12.70 | $1.27 | $0.13 |
Values change with exchange rates except for pairs quoted in USD. The pip calculator works them out live.
Pipettes
Most platforms quote a fifth decimal (third for yen pairs). That fractional pip is a pipette: 1.08525 is 1.0852 plus 5 pipettes.
Lot sizes
Standard 100,000; mini 10,000; micro 1,000 units. Many brokers allow sizes in steps of 0.01 lots.
Points in gold and indices
| Instrument | Common convention | What a $1 / 1-point move is worth |
|---|---|---|
| Gold (XAU/USD) | 1 lot = 100 oz | $100 per lot per $1 move |
| Index CFD | Often priced per point | Depends on contract size set by the broker |
Conventions differ between providers; always read the contract specification.
Common mistakes
- Assuming every pair is worth $10 a pip per lot.
- Confusing pips with pipettes when setting stops.
- Sizing gold like a currency pair; a $10 move in gold is common and costs $1,000 per lot.
Put it together with the position size calculator.
Common questions
How many pips does EUR/USD move a day?
It varies with market conditions; quiet days may see a few dozen pips and busy days considerably more.
Why is my GBP/JPY pip value different from EUR/USD?
GBP/JPY is quoted in yen, so its pip value in dollars depends on USD/JPY.