Are there smaller units than pips?

Yes. Some brokers offer fractional pips, called pipettes. These show an extra decimal place (a fifth decimal) for more precise pricing.

How do you calculate pip value?

Calculating value is key to understanding your potential gains or losses. Here’s a simple formula:

Pip Value = (Value change in quote currency ÷ Exchange rate) × Units traded

For example, say the EUR/USD exchange rate is 1.3000. The value change is 0.0001. If you trade a mini lot (10,000 units), the value is:

• 0.0001 ÷ 1.3000 × 10,000 = 0.76 (in quote currency)

To convert this to your account currency (e.g., USD), multiply by the exchange rate:

• 0.76 × 1.3000 = $0.98

Why does knowing pip value matter?

Knowing what is a pip and how to calculate it's value helps you manage risk and decide your position size. Are you using a pip calculator? It can make this easier, especially with multiple currency pairs.

At PROP365, understanding pips is part of building real trading discipline. It’s not just about profit—it's about precision. Mastering calculations helps you size your trades correctly, control your risk, and trade like a pro. Use value knowledge alongside your trading plan to make smarter, data-backed decisions every time you enter the market.