Aurum Trader FX pip calculator helps you calculate the value of a pip for any currency pair. Understanding pip value is crucial for trading risk management: basically, it shows your potential profit or loss in case the price moves by one pip. That makes the pip calculator an essential tool you should frequently use while trading.
Using the pip calculator to calculate pip value and potential profit helps you understand possible risks and opportunities in clear monetary terms. Depending on your order size, a pip can amount to $1 as well as $1,000, so you should always consider pip value when deciding whether an order is worth the risk. This pip calculator is a great tool for determining Stop Loss and Take Profit levels. But keep in mind that pip value is different for every currency pair.
To find out the pip value of a certain currency pair or another asset, enter your order details in the calculator.
The pip calculator uses the current Ask price to determine the value of one pip (shown under Pip value) in case the price moves by the number of pips indicated in the Pip amount field.
Let us say you want to buy a standard lot of EURGBP, or 100,000 EUR. The current exchange rate for this pair is 0.84730, and you expect it to move 5 pips up—to 0.84780. Each pip is worth 10 GBP for this order, so its expected value change is 50 GBP. The exchange rate for the GBPUSD pair is 1.29820 at the moment, so 1 GBP is worth 1.29820 USD. That means each pip equals 12.9820 USD—that is our Pip value—and your expected profit of 50 GBP equals 64.9100 USD.