How Do You Calculate Pips Value in Forex for Micro Lots? - Pip Value Micro Lot Explained

How to Calculate and Interpret Forex Pips Value Movement When Trading Micro Lots

In forex trading the pip is the fourth decimal in the currency price quote - for example a EURUSD quote of 1.3000 if it moves to 1.3001 this is a movement of 1 pip.

Currency pair pip movement in forex trading is calculated using pips, when trading one micro lot the pip movement is equal to $0.1 as shown on the trading examples below:

How to Calculate Pip Value in a Micro Account

To calculate the pip value movement when trading micro lots a trader will count the number of pips that a currency pair has moved and multiply the number of pips with $0.1. $0.1 is the pip value when trading forex micro lots.

1 pip is the smallest currency pair movement used when trading forex currencies.1 pip movement when trading Micro lots is equal to $0.1 dollars (1,000 units of currency * 0.0001 = $0.1 )

How to Calculate the FX Trading Pip Value Movement

Forex Example 1: if EURUSD moves from 1.3000 to 1.3001 this is equal to 1 pip - 1 pip is the fourth decimal place in the currency quote.

The pip value movement will be:

1.3001 - 1.3000 = 1 pip

1 pip* $0.1 per pip = $0.1

Therefore, 1 pip value movement for micro lot is equal to $0.1 dollars

Forex Example 2: for Example if EURUSD moves from 1.3000 to 1.3050 this is equal to 50 pips - 1 pip is the fourth decimal place in the currency quote.

The pip value movement will be:

1.3050 - 1.3000 = 50 pips

50 pip* $0.1 per pip = $5

Therefore, 50 pips value movement for micro lot is equal to $5 dollars

Forex Example 3: for Example if EURUSD moves from 1.3000 to 1.3100 this is equal to 100 pips - 1 pip is the fourth decimal place in the currency quote.

The pip value movement will be:

1.3100 - 1.3000 = 100 pips

100 pip* $0.1 per pip = $10

Therefore, 100 pips value movement for micro lot is equal to $10 dollars

How to calculate Pip Value Movement When Trading Micro Lots