The pip value represents how much profit or loss changes for every one-pip movement in price for one standard lot. It is calculated based on the quote currency of the instrument.
Pip value calculation:
Pip × Contract Size
For example, for a standard EUR/USD lot (100,000 units), the calculation is:
0.0001 × 100,000 = 10 USD
For a standard USD/JPY lot, the calculation is:
0.01 × 100,000 = 1,000 JPY
Profit and loss are calculated using the pip or tick value per lot and are then converted into the account’s base currency.
The pip value for all instruments can be found in the Product Outline, available under Legal Documents in your Client Portal or on our website.