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How do you calculate the value of 1 pip?

Here's the formula you'll need to calculate the value of one pip: OnePointValue = (Contract × (Price + OnePoint) ) - (Contract × Price)

  • OnePointValue: the value of a pip expressed in the quote currency
  • Contract: the size of the contract in the base currency
  • Price: the price of the currency pair
  • OnePoint: the minimum price change for the trading instrument (one pip)
  • Quote currency: the second currency in a currency quote
    • For EURUSD, the quote currency is USD.
    • For GBPCHF, the quote currency is CHF.
    • For EURGBP, the quote currency is GBP.

Example: Let's calculate the value of one pip on the GBPCHF pair in USD.

  • Contract size (in lots): 1.43
  • Trading instrument: GBPCHF
  • GBPCHF rate: 2.3533
  • Contract size (in base currency): 143,000 GBP
  • USDCHF rate: 1.1659 (we need this quote to convert the pip value into USD)

Now let's do the maths:

  1. OnePointValue = (143,000 × (2.3533 + 0.0001) ) - (143,000 × 2.3533) = 336536.2 – 336521.9 = 14.3 CHF
  2. Please note: If USD were the quote currency in our calculation (for example when converting the pip value in pounds to dollars with the GBPUSD rate) we would need to multiply the pip value of the base currency with the exchange rate in order to make the conversion to dollars (Pip Value in Pounds × GBPUSD Rate = Pip Value in USD). In this example, since USD is the base currency in USDCHF, we need to divide the pip value in Swiss francs by the USDCHF rate:

    OnePointValue = 14.3 CHF / 1.1659 = 12.27 USD

  3. So, in our example, we can say that a pip is worth 12.27 USD.

With spot metals, pip values are fixed. You can check out the pip values of our various spot metal instruments in our Contract specifications. Pip values can be calculated on any currency pair using the formula above.


  • Don't worry. Calculating the value of a pip is much easier with our "Trader's calculator".
  • For currency pairs whose rate is shown to the fifth decimal place (0.00001) in the trading terminal, one pip is equal to the minimum change in the fourth decimal place (0.0001). For pairs whose rate is shown to the third decimal place (0.001), one pip is equal to the minimum change in the second decimal place (0.01).

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