What is pip value?

Published on Mar 23, 2020

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We quote currency pairs by "5, 3 and 2" decimal places – also known as fractional pips or pipettes.

  • On a 5 decimal place currency pair a pip is 0.00010
  • On a 3 decimal place currency pair a pip is 0.010
  • On a 2 decimal place currency pair a pip is 0.10

For example: If GBP/USD moves from 1.51542 to 1.51552, that .00010 USD move higher is one pip.

When trading margin FX and other symbols, there are some easy rules to calculate the 'pip-value' of the trade so you can work out your potential gains and losses quickly.

A list of all traded symbols and their pip values is shown below. The pip scales in direct proportion to the trade size – so a 2 lot trade will have twice the value per pip as a 1 lot trade.

Pip values:

Margin FX pairs
Commodity CFDs
Indices