How to Calculate and Interpret Pips Value When Standard Lots Explained

How to Calculate and Interpret Pips Value Movement When Standard Lots

In 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 Standard lot the pip movement is equivalent to $10 as shown on the examples below:

How to Calculate Pip value in a Standard Account

To calculate the pip value movement when trading Standard lots a trader will count the number of pips that a currency pair has moved and multiply the number of pips with $1. $10 is the pip value when trading Standard lots.

1 pip is the smallest currency pair movement used when trading currencies.

1 pip move when trading Standard lots is equal to $10 (100,000 units of currency * 0.0001 = $10 )

How to Calculate the 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 4th decimal place in the currency quote.

The pip size movement will be:

1.3001 - 1.3000 = 1 pip

1 pip* $10 per pip = $10

Therefore, 1 pip value movement for Standard lot is equal to $10 dollars

Forex Example 2: for Example if EURUSD moves from 1.3000 to 1.3020 this is equivalent to 20 pips - 1 pip is the 4th decimal place in the forex quote.

The pip value movement will be:

1.3020 - 1.3000 = 20 pips

20 pip* $10 per pip = $200

Therefore, 20 pips value movement for Standard lot is equivalent to $200 dollars

Forex Example 3: for Example if EURUSD moves from 1.3000 to 1.3030 this is equal to 30 pips - 1 pip is the fourth decimal place in the currency quote.

The pip size movement will be:

1.3030 - 1.3000 = 30 pips

30 pip* $10 per pip = $300

Therefore, 100 pips value movement for Standard lot is equal to $1000 dollars

How to calculate Pip Value Movement When Standard Lots.