Definition
What is Pip value?
Pip value is the amount of money a one-pip move is worth for a given position size, in the account currency.
Knowing the pip value turns a stop loss in pips into a loss in dollars, which is the number that matters for daily and maximum loss limits.
For pairs quoted in USD (such as EURUSD or GBPUSD) the pip value for 1 standard lot of 100,000 units is $10, for 0.10 lot $1 and for 0.01 lot $0.10.
For other pairs the formula is: pip value = (pip size ÷ price) × units, converted into the account currency. On USDJPY, where a pip is 0.01, 1 lot at 150.00 is worth about $6.67 per pip.
Example
Example: 0.50 lot of EURUSD has a pip value of $5. A 25-pip stop therefore risks $125, which is 1.25% of a $10,000 account.
At a prop firm
Forex on Axora Funded uses standard 100,000-unit lots from 0.01 lot, so the usual pip values apply. The free lot size calculator converts pips into dollars for you.
Frequently asked questions
What is the pip value of 1 lot of EURUSD?
About $10 per pip.
Why does pip value change on USDJPY?
Because the profit is in yen and has to be converted into dollars at the current rate.