Pip value math

Forex Foundations

Value scales with lot size

Pip value depends on position size. On a standard lot, 100,000 units, of a USD-quoted pair, one pip is worth about $10. A mini lot, 10,000 units, is worth about $1 per pip. A micro lot, 1,000 units, is worth about $0.10 per pip.

A worked example

A trade that moves 25 pips in your favor on one micro lot, at roughly $0.10 per pip, nets out to about $2.50, small and precise, which is exactly why micro lots suit smaller accounts learning position sizing.

Size and pip value move together

Doubling your lot size exactly doubles your pip value, and therefore doubles your dollar risk for the same stop distance in pips. Size and pip value scale together, in lockstep.