What is a pip
A pip is the smallest standardized price increment most forex pairs quote. For majors it is 0.0001 (the fourth decimal); for JPY pairs it is 0.01 (the second decimal). Pipettes — fractional pips at the fifth decimal — are not used here.
Pip Value (in quote currency) = Pip Size * Position Size in Units If account currency != quote currency: Pip Value (in account) = Pip Value (in quote) / FX(account/quote)
For EUR/USD at 1 standard lot (100,000 units), pip value is 0.0001 × 100,000 = $10 per pip. For USD/JPY at 1 standard lot, pip value is 0.01 × 100,000 = 1,000 JPY per pip — that converts to roughly $6.50 USD at typical exchange rates.
Use this number when sizing positions with the Position Size Calculator.