Pip, point, lot. Each measures something else.
Mix up pip and point and your lot is off tenfold.
Pip or point?
Illustrative example: the quote on the board is made up.
Contract sizes. How much is one lot.
How many units one lot moves, by class. Check the contract before calculating.
Typical values
| Class | Size of 1 lot |
|---|---|
| Forex | 100,000 (base currency) |
| Gold (XAU) | 100 troy ounces |
| Silver (XAG) | 5,000 troy ounces |
| Platinum / palladium | 100 troy ounces |
| Base metals (Cu, Zn, Pb, Ni, Al) | 1 tonne |
| Energies (oil, gas) | 1,000 barrels / MMBtu |
| Indices | 1 (×10 or ×100 on variants) |
| Stocks | 100 shares |
| Crypto | 1 coin |
Pip vs point. Two different decimals.
1.08452
- Pip
- 4th decimal · 0.0001
- Point
- 5th decimal · 0.00001
The point varies by instrument: confirm it in its specification.
| Class | Pip | Point |
|---|---|---|
| Standard currencies | 0.0001 (4th decimal) | 0.00001 (5th) |
| Gold, silver, JPY | 0.01 (2nd decimal) | 0.001 (3rd) |
| Crypto | 0.1 (1st decimal) | 0.01 (2nd) |
One pip, in money. It depends on the contract.
Pip value=Contract×Pip×Lots
The result is in the quote currency.
- Contract
- the units one lot moves
- Pip
- the price’s reference decimal
- Lots
- the volume you trade
CalculatorUSD account
- Contract size
- 100,000 EUR
- Pip
- 0.0001
- Pip value · 1 lot
- 10 USD
Pip value
per 0.0001 move
Before you calculate. Precision and swap.
Precision and rounding
Confirm the tick: a pip isn’t always the minimum increment.
Calculate at full precision: two decimals on screen aren’t enough.
Round the lot down to the contract step: rounding up can exceed your risk.
When swap is applied
Confirm the cutoff time and multiple-charge days with the broker.
Check the rate’s unit before converting it to money.
Next, your instrument’s contract.
View contract specifications
These are reference values. Your contract may differ.