# Forex margin and pip calculator

## How to calculate pips in forex trading

This pip calculator enables you to work out your profit or loss per pip on each trade you make, as well as the required margin. Simply select your base currency and trade size, then choose your market from the list below.

Neither City Index nor its affiliates will be held responsible for the reliability or accuracy of this data. The service is provided in good faith. However, there are no explicit or implicit warranties of accuracy. The user agrees not to hold City Index or any of its affiliates, liable for trading decisions that are based on the pip & margin calculators from this website.

Pips, short for percentage in point, are a measurement of how much a currency pair moves. Interpreting price changes using pips enables traders to profit from relatively small movements. Also sometimes known as ‘points’, the value of a pip will vary depending on the forex pair traded.

### How much is a pip worth?

For the majority of currency pairs, one pip equates to a single-digit change in the fourth decimal place (0.0001) of the value of a currency – or 1/100 of 1%. For example, if EUR/USD moves from 1.1722 to 1.1727, it has gone up by five pips.

For Japanese yen (JPY) pairs, however, the calculation is different. Here, the second digit after the decimal point is the pip and equates to 1%.

However, how much a one-pip move in a forex pair affects your profit or loss will depend on the size of your position.

### How the forex pip calculator works

The forex pip calculator works by multiplying the size of your position by the value of a single pip, then converting that figure into your chosen base currency. It also calculates your total required margin, by dividing the total size of your position by your chosen market’s margin factor.

The pip calculator will show you exactly how much you’d make or lose for each point of movement that may occur in the underlying market – together with the deposit requirements for opening a position.

Say, for example, that you bought EUR/USD with a contract size of 10. You’d make or lose 10 USD for each pip of movement – and by selecting AUD as your base currency in the calculator, you can see how much that is worth in Australian dollars.

### Fractional pips

In addition to the standard pip, most forex brokers also offer ‘fractional pip pricing’ by adding an extra fifth decimal place to their quotes. As well as enabling tighter spreads, these provide a more precise price.

### 1000+ markets. Zero risk.

Open your free City Index demo to try out trading on our full range of markets – without risking any capital.

The markets are always moving. Get the latest news and analysis.

## Stay ahead of the markets with expert analysis

Why choose City Index?

With fast, reliable execution and tight spreads here's why over one million clients choose City Index as their broker of choice.

Speed

Over 99% of trades are executed in less than a second.

Reliability

With 24/5 dedicated client support, we’re always on hand to help – and 99.99% of all valid trades are executed by our market-leading trading technology.

Experience

We’re backed by Nasdaq-listed StoneX, a Fortune 100 company with over a century in the financial markets. Combined with our four decades of heritage, you’re in good hands.

Tools

Enhance your trading experience with our exclusive Performance Analytics technology and comprehensive risk management tools including Guaranteed Stop Loss Orders. Our tools are designed to help you manage risk effectively and make informed decisions.