This free application allows traders to calculate the value of one pip for most currency pairs. A very important & practical tool for all traders.

No matter how big or small the trade is the Forex Pip Value Calculator will tell you the precise value of one pip in USD.

Just click the button below and download your free

Pip Value Calculator Application.

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PIP stands for price in points. It describes the smallest incremental change in the pair price of currency. This change in price is what determines whether or not you make a loss or profit. Making PIPs is a good thing; if you get them you have made a profit. And of course if you lose them you have taken a loss.

Using a **PIP Value Calculator** you can help to calculate PIP values. For most currency pairs the PIP is the change in the fourth decimal point in the currency exchange rate. For USDJPY it is the change in the second decimal point, because these are always quoted only up to the second decimal point. so this means that for most currency pairs the PIP is 0.0001% or 0.01%.

A very easy example of PIPs can be seen using EURUSD, as it is one of the most heavily traded pairs. If the price is 1.3412 and it moves to 1.3419 the pair has seven PIPs. USD in the pair makes it really easy to calculate. One PIP is $10 on the standard lot, which is 100,000 Euros in this example. Also, the price means that one Euro equals 1.3412 United States dollars.

If USD is not the second currency, it becomes a little more complicated. If you are trading the other way around, or USDEUR, and the rate is .7654 and it becomes .7655 you have one PIP. In the standard 100,000 Euro lot you now have 76,550 Euros. You have made 10 Euros in this case and must divide by the new currency rate of .7655. So the total profit in US dollars is $13.06 for one PIP.

As you get more familiar with forex trading you will come to understand the importance of PIPs. You only need to understand the basics of the calculations because most of the time a **PIP Value Calculator** is used. Doing the calculations by hand becomes tedious and unnecessary. Forex trading can be fun and very profitable if done right. Trade virtual money first to get a feel for things before moving on to real money.