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Trading Math
How to Calculate Pip Value
Pip value is the size of the trade multiplied by the size of one pip, and the answer comes out in the currency on the right of the pair. This paper shows you the sum, the same pip at three trade sizes, what it made of one real day, the one extra step for pairs not quoted in your account's currency, and where the sum shows on your own platform.
Every number in a profit column comes from one multiplication. A lot is the standard trade size, 100,000 units of the currency on the left of the pair. A pip is the fourth decimal place of the price, 0.0001, the smallest step most people count in. Multiply the two and one pip on one lot of the euro against the dollar is 100,000 times 0.0001, which is ten — and it is ten of the currency on the right, the dollar, because that is the currency the price is written in. Ten dollars a pip. Every other number in this paper is that one, scaled.
The same pip at three sizes
Change the trade size and the answer scales with it, exactly. A tenth of a lot is 10,000 units, so a pip is one dollar. A hundredth of a lot, the smallest size most brokers allow, is 1,000 units, so a pip is ten cents. The pip on the chart is the same 0.0001 in every case; the chart does not know what size you trade. Only the multiplier changes, and it changes the answer in proportion.
Here is the sum on a real day. The euro against the dollar opened on 3 September 2026 at 1.15872 and closed at 1.16259: 38.7 pips. Multiply by the pip value at each size and the day is worth $387 on one lot, $38.70 on a tenth, and $3.87 on a hundredth. Pips moved times pip value is the result, and the chart contributed the same 38.7 pips to all three.
