Definition
A pip is the smallest standard price increment in forex quotes.
For most pairs, one pip equals 0.0001. For JPY quote pairs, one pip is typically 0.01.
Pip value is first derived in quote currency and then converted into account currency when needed.
Calculation
Basic formula: pip value per lot = pip size / exchange rate x lot size.
If your account currency differs from the quote currency, convert the pip value using the relevant FX rate.
Standard, mini, and micro lots scale pip value proportionally by position size.
Handy Rule of Tens
For many USD-quoted majors, a standard lot often approximates around 10 units of quote currency per pip.
JPY pairs are the common exception because their pip size uses 0.01 formatting.
Always verify live pip value in platform because rate changes and cross-currency conversion affect exact figures.
