Pricing & Costs
Beginner
Pip Value
Also called: pip cost
The dollar (or account-currency) value of a 1-pip move on a given position size — drives position sizing math.
Definition
Pip value depends on three things: lot size, the pair’s quote currency, and your account’s base currency. For a USD-account trading EUR/USD: 1 standard lot = $10/pip. 1 mini lot = $1/pip. 1 micro lot = $0.10/pip.
For pairs where USD isn’t the quote (e.g. EUR/GBP, USD/JPY), pip value is calculated in the quote currency and then converted to USD at the current rate.
Formula
Pip value = (Pip size / Exchange rate) × Lot size in base currency