Pip Calculator
Not knowing your pip value is how prop firm traders blow daily loss limits on a single trade. Select your firm below to calculate pip value against their specific rules.
Why Pip Value Calculation Is Non-Negotiable on Prop Firms
Prop firm daily loss limits are measured in dollars, not pips. The only way to connect your stop loss distance (in pips) to your actual dollar risk is through pip value. Skip this calculation and you are flying blind.
The formula is straightforward: dollar risk equals lot size multiplied by pip value multiplied by stop loss distance in pips. On EUR/USD with a 20-pip stop and a 0.5 lot position, your risk is 0.5 x $10 x 20 = $100. Scale that to 5 lots and a 50-pip stop and you are risking $2,500 -- half of FTMO's $5,000 daily limit on a single trade.
The reference table above covers the most commonly traded pairs. For exotic pairs or accounts denominated in EUR or GBP, use the firm-specific calculators above which account for your account currency, current exchange rates, and that firm's exact daily loss limit structure.
Frequently Asked Questions
What is a pip in forex trading?
A pip (percentage in point) is the smallest standard price movement in a forex pair. For most pairs like EUR/USD, one pip equals 0.0001 (the fourth decimal place). For JPY pairs like USD/JPY, one pip equals 0.01 (the second decimal place). On prop firm accounts, knowing your pip value is essential to avoid oversizing trades and breaching daily loss limits.
How much is one pip worth on a standard lot?
On a standard lot (100,000 units), one pip is worth approximately $10 for most USD-quoted pairs like EUR/USD and GBP/USD. For USD/JPY, one pip is also approximately $9-$10 depending on the current exchange rate. On a mini lot (10,000 units) one pip is $1, and on a micro lot (1,000 units) it is $0.10.
Why does pip value matter on prop firm challenges?
Prop firms enforce strict daily loss limits. If you do not know your pip value, you cannot accurately calculate how many pips of adverse movement will breach your limit. On FTMO with a $5,000 daily loss limit, trading 5 standard lots means a 100-pip move against you costs $5,000 -- your entire daily budget gone in one trade.
Does pip value change across currency pairs?
Yes. Pip value depends on the pair, lot size, and current exchange rate. For pairs where USD is the quote currency (EUR/USD, GBP/USD), pip value is fixed in USD. For pairs where USD is the base currency (USD/JPY, USD/CHF), pip value fluctuates with the exchange rate. Always recalculate before trading exotic pairs.