Pip Calculator

0.0001

0.01

Scenario

The pip calculator run on the values above, showing the full calculation path rather than only the answer.

Inputs

Calculation

1. Divide the price move by the pip size for the pair type. → 100.0 pips

Result

Pips in the Move: 100 pips

Interpretation

A 0.01 move = 100.0 pips (pip 0.0001).

Your Result: Pips in the Move: 100 pips

What This Means

This translates any price move into the universal language stops, targets and costs are quoted in.

Why It Matters

A 0.01 move = 100.0 pips (pip 0.0001).

How this is calculated

Pips standardise distance across pairs: hundredths of a cent for most, whole hundredths of a yen for JPY pairs.

What drives the result

Profit is direction times distance times size. Risk is equity times the percentage staked, converted into lots through the stop distance. Leverage does not change the profit of a trade — it changes how little deposit secures it and how fast mistakes compound. Every cost must be inside the breakeven before a strategy can work.

Introduction

Retail forex trading is position sizing plus cost control: pips convert prices to risk, leverage converts deposits to exposure, and spread, swap and commission convert activity into cost. These calculators price each link before capital is committed.

Concept Explanation

Profit is direction times distance times size. Risk is equity times the percentage staked, converted into lots through the stop distance. Leverage does not change the profit of a trade — it changes how little deposit secures it and how fast mistakes compound. Every cost must be inside the breakeven before a strategy can work.

Applications

• •Risk 1%–2% per idea and count correlated positions as one trade
• •Demand 1:2 risk–reward or better unless the win rate is proven
• •Include all costs in the breakeven before judging a setup
• •Keep effective leverage under 10:1 unless stops are guaranteed

Common Misconceptions