Calculation results
Pip value –
Error fetching exchange rate
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 information 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.
- 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) and the potential change in your position value (shown under Order value change) 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 0.84735, and you expect it to move 5 pips up—to 0.84740. That means each pip is worth 10 GBP for this order, and its expected value change is 50 GBP. The exchange rate for the GBPUSD pair is 1.29820 at the moment, so every GBP is worth 1.29820 USD. That means 10 GBP cost 12.9820 USD—that is our Pip value—and the expected Order value change 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.
