Trader's Glossary

Pip Value

Pip value relates to the value of each pip in a given trade, which is converted into a trader’s account currency. Knowing pip value is important to traders as it helps them accurately determine how much even small price swings are affecting their profit and loss levels. The calculation is performed as follows: Pip value = (one pip / exchange rate) * lot size. Click on "Trading Calculator" in the menu on the left to perform calculations and see practical examples.