For nearly 25 years, I’ve relied upon this quick, easy method for pip value calculation. 1 pip is worth roughly $1 per 10,000 units of currency. Remember that this scales up and down; that same pip is worth roughly 10 cents per 1,000 units of currency, or $10 per 100,000 units. 1,000 units: 1 pip = $0.10 10,000 units: 1 pip = $1.00 100,000 units: 1 pip = $10.00 1,000,000 units: 1 pip = $100.00 10,000,000 units: 1 pip = $1000.00 100,000,000 units: 1 pip = $10,000.00 1 billion units: 1 pip = $100,000.00 Remember: The above estimates are just that – estimates. The given exchange rate and base currency may change the exact pip value. It’s good practice as a trader to understand the formula for calculating the value of a pip when trading forex. Don’t worry: The formula for calculating pip values isn’t overly complicated. To determine the value of a pip for a given currency pair, take the pip format (0.0001 in most cases) for the pair in question and multiply it by the current exchange rate. Then, multiply that figure by the trade size. This will give you the value of one pip for that specific trade. Let’s look at an example: The pip format is 0.0001, and our example exchange rate is 1.1234. 0.0001 x 1.1234 = 0.00011234 pips. Our trade size will be 100,000 units. 0.00011234 x 100,000 = 11.234. For this trade, one pip will be worth roughly $11.23. Note: The larger the trade value and trade size, the larger the value of each pip (and vice versa). Check out my Position Size Calculator to learn more about the relationship between the size of your trade and your trading strategy.