Source: https://whitepips.com/blog/pip-value-explained Summary: What a pip is, how pip value is worked out for USD-quoted, USD-base and cross pairs and gold, with examples at 0.10 and 1.00 lots on MT5. Last updated: 2026-10-28 # Pip value explained: what a pip is worth on MT5 What a pip is, how pip value is worked out for USD-quoted, USD-base and cross pairs and gold, with examples at 0.10 and 1.00 lots on MT5. - October 11, 2026 - 8 min read - 10 sections - Markets **In this article 10** 1. What is a pip in forex? 2. How is pip value calculated? 3. What is a pip worth on USD-quoted pairs? 4. What is a pip worth when the dollar is the base currency? 5. How do you calculate pip value on a cross pair? 6. What is a pip worth on gold? 7. Worked examples at 0.10 and 1.00 lots 8. How does pip value connect to a daily loss limit? 9. How do I find pip value in MT5? 10. What are the common pip value mistakes? Back to top October 11, 2026 8 min read Markets ## In short - A pip is 0.0001 on most pairs and 0.01 on yen pairs. An MT5 point is a tenth of a pip on a five-digit quote. - Pip value is pip size × contract size × lots, in the quote currency, then converted to dollars. - USD-quoted pairs are $10 per pip per lot, fixed. On USD-base and cross pairs the value moves with the rate. - Gold is $1 per 0.01 move per lot on a 100-ounce contract. Think in dollars of price. - Divide your daily loss limit by your position's pip value to see how many pips the day can take, and size from the risk, not from habit. A pip is the standard unit of price movement in forex: 0.0001 on most currency pairs and 0.01 on pairs quoted in Japanese yen. On one standard lot (1.00) of a pair quoted in US dollars, such as EURUSD, a pip is worth $10, and on 0.10 lots it is worth $1. On every other pair the dollar value moves with an exchange rate, and the sum is short enough to do by hand. Pip value is the number that turns a stop distance into money. Get it wrong and a trade meant to risk $300 can carry $3,000. This post covers the pip size, the formula for the three kinds of currency pair, gold, and how pip value connects to the loss limits on a funded account. ## What is a pip in forex? A pip is the fourth decimal place on most pairs. When EURUSD moves from 1.1000 to 1.1001, it has moved one pip. On pairs quoted in yen, such as USDJPY or GBPJPY, the pip is the second decimal place: a move from 150.00 to 150.01 is one pip. On most MT5 servers prices carry one more digit than that: five decimals on EURUSD (1.10005) and three on USDJPY (150.005). The extra digit is a tenth of a pip, sometimes called a pipette. MT5 calls the smallest price step a point, so on a five-digit quote ten points make one pip. Practical: MT5 shows the spread and the stops level in points, not pips, and so does any setting that asks for a distance in points. A 30 typed where 30 pips was meant is 3 pips on a five-digit quote. Read the number of digits in the symbol's specification before you trust a distance. ## How is pip value calculated? The formula has two parts. First work out the pip value in the pair's quote currency, the second currency in its name. Then convert it into the account currency, which on WhitePips CFD accounts is the US dollar. **Pip value in the quote currency = pip size × contract size × lots.** A standard forex lot is 100,000 units of the base currency, so one lot always gives 10 units of the quote currency per pip (0.0001 × 100,000), or 1,000 yen per pip on a yen pair (0.01 × 100,000). What happens next depends on where the US dollar sits in the pair. ## What is a pip worth on USD-quoted pairs? When the US dollar is the quote currency, as in EURUSD, GBPUSD and AUDUSD, the pip value is already in dollars and does not change with the price: - 1.00 lot: **$10** per pip. - 0.10 lots: **$1** per pip. - 0.01 lots: **$0.10** per pip. This is the figure people carry in their heads, and it is easy to apply it where it does not belong, because it is only true for this group of pairs. ## What is a pip worth when the dollar is the base currency? On USDJPY, USDCHF and USDCAD the pip value comes out in yen, francs or Canadian dollars. To turn it into US dollars, divide by the pair's own price. - **USDJPY at 150.00:** 1,000 yen per pip per lot, divided by 150, is **$6.67** per pip on 1.00 lot and about **$0.67** on 0.10 lots. - **USDCAD at 1.3500:** 10 Canadian dollars divided by 1.35 is **$7.41** per pip per lot. - **USDCHF at 0.8000:** 10 francs divided by 0.80 is **$12.50** per pip per lot, more than on EURUSD. The prices here are illustrations. The value changes as the pair moves, so a size that was right last month may not be right today. ## How do you calculate pip value on a cross pair? A cross pair has no US dollar in it at all: EURGBP, EURJPY, GBPJPY, AUDCAD. Work out the pip value in the quote currency as before, then convert it at that currency's rate against the dollar. - **EURGBP with GBPUSD at 1.3000:** £10 per pip per lot, multiplied by 1.30, is $13.00 per pip. - **EURJPY or GBPJPY with USDJPY at 150.00:** 1,000 yen per pip per lot, divided by 150, is $6.67 per pip. Every yen-quoted pair has the same pip value at a given USDJPY rate. - **AUDCAD with USDCAD at 1.3500:** 10 Canadian dollars divided by 1.35 is $7.41 per pip. **Pip value per 1.00 lot, at the article's rates** USD-quoted pairs are fixed at $10; everywhere else the value moves with the rate. | Pair | Rate used | Per pip, 1.00 lot | | --- | --- | --- | | EURUSD, GBPUSD, AUDUSD | any | $10.00 | | USDJPY | 150.00 | $6.67 | | USDCAD | 1.3500 | $7.41 | | USDCHF | 0.8000 | $12.50 | | EURGBP | GBPUSD 1.3000 | $13.00 | | EURJPY, GBPJPY | USDJPY 150.00 | $6.67 | | AUDCAD | USDCAD 1.3500 | $7.41 | | XAUUSD (100 oz) | any | $10 per 0.10 move | Illustrative rates from the article. A tenth of the lot is a tenth of the pip value: 0.10 lots of EURUSD is $1 per pip. A useful rule of thumb: if one unit of the quote currency is worth more than a dollar, its pip is worth more than $10 a lot; if it is worth less, the pip is worth less. ## What is a pip worth on gold? Gold is not a currency pair, so the word pip is used loosely. On most MT5 servers one lot of XAUUSD is 100 troy ounces and the price has two decimals. Check the contract size in the symbol's specification, because a broker can set it differently. - A 0.01 move is **$1** per lot. - A 0.10 move, commonly called a pip on gold, is **$10** per lot. - A **$1.00** move is **$100** per lot, and **$10** on 0.10 lots. Because the definition of a gold pip varies, it is safer to think in dollars of gold price. A $5 stop on one lot is $500 whatever anyone calls it. The post on [trading gold on a funded account](https://whitepips.com/blog/trading-gold-on-a-funded-account) works through gold sizing in detail. ## Worked examples at 0.10 and 1.00 lots The loss on a stopped-out trade is the stop distance in pips multiplied by the pip value. With the illustrative prices above: - **EURUSD, 30-pip stop:** **$30** at 0.10 lots, **$300** at 1.00 lot. - **USDJPY at 150.00, 30-pip stop:** about **$20** at 0.10 lots, about **$200** at 1.00 lot. - **EURGBP with GBPUSD at 1.3000, 20-pip stop:** **$26** at 0.10 lots, **$260** at 1.00 lot. - **XAUUSD, **$5** stop:** **$50** at 0.10 lots, **$500** at 1.00 lot. The same 1.00 lot carries very different risk across these four. Sizing by habit, one lot whatever the symbol, means taking a different bet on every chart. Costs come on top, and they are paid in the same dollars. The spread is a distance in pips: a one-pip spread on one lot of EURUSD is $10 the moment the trade opens. Commission on Edge and Instant accounts is $5 per lot round turn on forex and $6 on metals; on Prime it is $4 and $5. A 0.10-lot EURUSD trade on Edge therefore pays $0.50 in commission, and a one-lot gold trade $6. ## How does pip value connect to a daily loss limit? On a funded account pip value matters because the loss limits are in dollars. Take a [$100K Edge 1 Step](https://whitepips.com/cfds/ch_one_step) : the Max Daily Loss is $4,000 (4%) and the Max Loss is $7,500 (7.5%), static. The daily figure is measured from the previous day's closing balance at 17:00 New York, open losses included, and reaching it ends the account. Divide the limit by the pip value of your position and you know how many pips of adverse movement the day can absorb: - 1.00 lot of EURUSD: **$4,000** divided by **$10** is 400 pips. - 5.00 lots: 80 pips. - 10.00 lots: 40 pips, a distance EURUSD can cover in a single session. Now turn it round and size from the risk. Suppose the plan is to risk 1% of the account, $1,000, on a trade with a 25-pip stop: - EURUSD: **$1,000** divided by (25 × **$10**) is **4.00 lots**. - USDJPY at 150.00: each pip on one lot is about **$6.67**, so 25 pips is about **$166.67** a lot, and **$1,000** buys **6.00 lots**. - XAUUSD with a **$10** stop instead: **$1,000** divided by ( **$10** × 100) is **1.00 lot**. Same dollar risk, three different lot sizes. Four full losses at that size would use the whole daily limit, so a careful plan risks less per trade, or stops for the day well before that point. The general method is in [position sizing against a loss limit](https://whitepips.com/blog/sizing-against-the-limit) . A size that fits the daily limit must also fit Max. Exposure, which caps the combined notional of open positions at $1,250,000 on a $100K account. ## How do I find pip value in MT5? MT5 does not print a pip value, but it shows what you need to work one out. Right-click the symbol in Market Watch and open Specification. The contract size gives the units per lot, the digits give the number of decimal places in a quote, and the profit currency tells you which currency the first step of the formula comes out in. Depending on the build, the window may also show a tick value: the value of the smallest price step per lot. On a five-digit forex quote, ten of those steps make a pip. The quicker route is the [pip value calculator](https://whitepips.com/tools/pip-value-calculator) , which does the conversion for any pair and lot size. To go the other way, from a dollar risk and a stop distance to a lot size, use the [position size calculator](https://whitepips.com/tools/position-size-calculator) . The symbols available on WhitePips CFD accounts are listed on the [symbols page](https://whitepips.com/symbols) . ## What are the common pip value mistakes? - **Points read as pips.** A stop of 50 points on a five-digit quote is 5 pips. The trade is stopped out on noise, or sized ten times too large if the error runs the other way. - **Assuming $10 a pip everywhere.** It holds for USD-quoted pairs only. On EURGBP or USDCHF it can be more; on yen pairs it is less. - **Carrying forex lot sizes to gold.** One lot of gold moves $100 for every dollar of price, and gold can travel several dollars in minutes. - **Forgetting costs.** Spread and commission come out of the same budget as the stop. On small, tight trades they are a large share of the risk. - **Using a stale rate.** Pip value on pairs not quoted in dollars moves with the exchange rate. Recalculate rather than reuse last month's size. Trading leveraged products can lose money quickly, and on a CFD account the Max Daily Loss and Max Loss end the account when they are reached. Pip value is the arithmetic that keeps each trade inside them. Reference pages [EURUSD pip value](https://whitepips.com/symbols/eurusd) [USDJPY pip value](https://whitepips.com/symbols/usdjpy) [XAUUSD pip value](https://whitepips.com/symbols/xauusd) [Every symbol](https://whitepips.com/symbols) More in Markets [Trading bitcoin and crypto CFDs on a funded account](https://whitepips.com/blog/trading-crypto-on-a-funded-account) [Trading the Nasdaq 100 on a funded account](https://whitepips.com/blog/trading-the-nasdaq-on-a-funded-account) [Reading order flow without over-reading it](https://whitepips.com/blog/reading-order-flow) [Read next Lot sizes explained: standard, mini and micro lots Markets · 7 min read](https://whitepips.com/blog/lot-sizes-explained) Educational content, not financial advice. Trading carries risk and most people who attempt an evaluation do not pass it. Accounts are simulated; the rules that bind yours are the ones printed on your plan and in the trading rules. [All articles](https://whitepips.com/blog) ## Related articles Markets October 11, 2026 7 min read ### Lot sizes explained: standard, mini and micro lots What 1.00, 0.10 and 0.01 lots mean in units and dollars, how lot size scales risk, and how to pick a lot size from a stop and a risk budget. [Read the article](https://whitepips.com/blog/lot-sizes-explained) Risk August 27, 2026 2 min read ### Position sizing against a loss limit, not a feeling How to turn a published drawdown into a per-trade position size, and why the arithmetic should be done once rather than trade by trade. [Read the article](https://whitepips.com/blog/sizing-against-the-limit) Markets September 20, 2026 8 min read ### Trading gold on a funded account: sizing XAUUSD What one lot of XAUUSD is worth per dollar move, why gold ends so many evaluations, and how to size it against a 4% daily limit on a $100K account. [Read the article](https://whitepips.com/blog/trading-gold-on-a-funded-account) ## Ready to see the plans? Every plan, size and price, with the rules printed before you buy. [See the plans](https://whitepips.com/#plans) [Trading calculator](https://whitepips.com/calculator) --- WhitePips provides skill-based trading evaluations on simulated accounts; payouts are real money based on simulated performance. Nothing here is financial advice or a promise of profit, passing an evaluation does not guarantee funding, payouts or income, and trading leveraged products carries significant risk. Not offered in the restricted jurisdictions listed at https://whitepips.com/legal/restricted-jurisdictions.