How to Convert Pips Into Money

One number, both ways

Between pips and money there is one number, the pip value: what one pip is worth at the size you traded. A pip is the fourth decimal place of the price, and on the euro against the dollar it is worth ten dollars per lot — a lot being 100,000 euros. So pips times pip value is money: on 3 September 2026 the euro rose 38.7 pips from its open to its close, and at one lot that was $387. And money divided by pip value is pips: $387 over ten dollars is 38.7. The same number does both jobs.

The same pips, three sizes

The pips are the market's; the pip value is yours, because it comes from the size. At one lot the pip value is ten dollars and 38.7 pips is $387. At a tenth of a lot it is one dollar and the same pips are $38.70. At a hundredth it is ten cents and they are $3.87. The chart did the same thing for all three traders; the number they multiplied by is what made the money different.

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