# Pip Calculator

## Pip Calculator

The Pip value calculator widget helps convert the price change of an asset from pips to the trading account currency for a specified position size. Through the automated process, you can precisely determine the levels of risk and reward per trade.

"Pip" is an acronym for percentage in point or price interest point. It is a widely used term that means the smallest whole unit price move that an exchange rate can make, based on forex market convention.

## How to use

To use the Forex pip value calculator and determine the level of risk and reward per trade, follow the steps below:

1. Enter the range of the pip amount or calculate it by specifying the two prices
2. Select the currency pair for which you want to calculate
3. Enter the position size
4. Select the account currency

## Q&A

Within the scope of FOREX trading, a "pip" indicates a "percentage in point." It is a common measure of change in a currency pair's exchange rate. A pip's value is usually not set and might change depending on the amount of the trade and the currency pair being exchanged.

The formula to calculate the value of a pip in most currency pairs is as follows:

Value of 1 Pip =

Exchange Rate

Here's a breakdown of the components:

Pip: This represents the exchange rate's one pip movement. for most currency pairs, it is the fourth (0.0001). For example, the smallest whole unit moves the USD/CAD currency pair can make is \$0.0001= 1 pip. But for currency pairs involving the Japanese Yen, 1 pip = \$0.01

Trade Size: This indicates the number of units of the base currency being traded.

Exchange Rate: This is the current rate at which one currency can be exchanged for another.

For most CFDs like Gold, Silver, Oil, 1 pip equals \$0.01, while in Copper and Gas, CFDs 1 pip equals 0.001. To calculate the pip value in Gold, let’s take an example:

If one is trading 100 ounces of Gold, and the present cost of Gold stands at \$2020 per ounce, a fluctuation of 1\$ in the Gold price will lead to a 100-pip rise or fall.

Size of contract = 100 ounces

Pip = \$0.01

Current price = \$2020

So, Pip value = (100 x 0.01) / 2020 = 0.0004950 per ounce

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