1. Know your pip size
For most pairs a pip is 0.0001 of the quote price. For yen pairs such as USD/JPY a pip is 0.01, because they are quoted to two decimals.
Free forex tool
Forex pip calculator
A pip is the smallest standard price move in a currency pair, but what it is worth depends entirely on your trade size. Enter your lot size and pip size below to see the value of one pip and what your stop loss in pips actually costs — free, no account needed.
Trade size (units)
100,000
Pip value (quote currency)
$10
Pip value (account currency)
$10
Stop loss value
$300
Leave the conversion rate at 1 when the pair's quote currency is the same as your account currency (for example EUR/USD on a USD account). Educational tool only — not financial advice.
How pip value is calculated
2. Convert to money
Pip value = pip size x trade size in units, expressed in the quote currency. If your account is in a different currency, divide by the exchange rate between them.
3. Price your stop loss
Multiply the pip value by the number of pips to your stop and you know exactly what the trade risks before you click buy or sell.
Worked examples
EUR/USD, one standard lot. A pip is 0.0001 and the trade is 100,000 units, so one pip is worth $10. A 30-pip stop loss risks $300 — the same stop on a mini lot risks $30, and on a micro lot $3.
USD/JPY, one mini lot. A pip is 0.01 and the trade is 10,000 units, so one pip is 100 JPY. With USD/JPY trading near 150, that is roughly $0.67 per pip on a US dollar account — which is why the conversion field above matters whenever the quote currency is not your account currency.
Pip value is only half the risk question. Once you know what a pip is worth, the next step is deciding how many lots to trade so a losing trade costs a fixed percentage of your account — that is what the position size calculator does.