# Pip calculator

Octa Forex pip calculator helps you calculate the value of a pip for any currency pair. Understanding pip value is crucial for trading risk management: basically, it shows your potential profit or loss in case the price moves by one pip. That makes the pip calculator an essential tool you should frequently use while trading.

You can also use the Octa trading tools page to get all the most important market info in a single glance. Check the exact trading hours for all available assets, crucial trading news, and upcoming events to plan your trading activities even more efficiently and stay on top of significant market movements.

## How to calculate pip value using the calculator

To find out the pip value of a certain currency pair or another asset, enter your order details in the calculator.

**Symbol**is the asset you are planning to trade.**Account currency**is the deposit currency of your Octa trading account.**Pip amount**is the expected price movement in pips.**Volume, lots**is your position size in lots. One standard lot is 100,000 units of the base currency (listed first in a pair).**Ask price**is the current price of your asset on the market. You can freely change it.

The pip calculator uses the current

**Ask price**to determine the value of one pip (shown under

**Pip value**) in case the price moves by the number of pips indicated in the

**Pip amount**field.

### Example: how to calculate pips in Forex trading

Let us say you want to buy a standard lot of EURGBP, or 100,000 EUR. The current exchange rate for this pair is 0.84730, and you expect it to move 5 pips up—to 0.84780. Each pip is worth 10 GBP for this order, so its expected value change is 50 GBP. The exchange rate for the GBPUSD pair is 1.29820 at the moment, so 1 GBP is worth 1.29820 USD. That means each pip equals 12.9820 USD—that is our **Pip value**—and your expected profit of 50 GBP equals 64.9100 USD.

## How to use the pip calculator for trading

Using the Forex pip calculator to calculate pip value and potential profit helps you understand possible risks and opportunities in clear monetary terms. Depending on your order size, a pip can amount to $1 as well as $1,000, so you should always consider pip value when deciding whether an order is worth the risk. This pip calculator is a great tool for determining Stop Loss and Take Profit levels. But keep in mind that pip value is different for every currency pair.

## FAQ

## What is one pip in Forex?

- One pip is the smallest unit of price change in Forex. For most trading instruments, a pip refers to the fourth decimal point, or 0.0001. However, there are assets with different pip meanings:
- 3-digit currency pairs and XAGUSD—the 2nd decimal (0.01)
- XAUUSD, XBRUSD, XTIUSD, and indices (except JPN225)—the 1st decimal (0.1).

## How do you calculate pips?

Forex brokers usually provide their users with pip calculators to define the value of one pip. Octa offers a free pip value calculator that you can use to calculate the pip value and potential order value change for any available currency pair.

## How much is 50 pips or 100 pips?

A pip usually equals 0.0001 of a Forex pair, so 50 pips equals 0.005, 100 pips—0.01. If one pip is worth $5, 50 pips are worth $250, 100 pips—$500. Use the calculator to compute these numbers automatically.

## When should you use the pip calculator?

The pip calculator is essential for planning trades. Use it to evaluate your risks in monetary terms and set a Stop Loss order to prevent excessive losses or approximate your profits before opening a new position.