What is a Pip Calculator in Forex?

A pip calculator in forex is a pre-trade planning tool that estimates the monetary value of a pip movement for a particular currency pair and position size. For those unaware, a “pip” is a standardised unit used to measure changes in the exchange rate of many currency pairs. 

• For most major currency pairs, one pip is the fourth decimal place
• Specifically, for “YEN-based” pairs, one pip represents the second decimal place.

How to Calculate Pip Value in Forex?

Generally, the pip value in forex can be calculated using the following formula:

• Pip Value = Pip Size × Position Size

However, if you want to avoid manual calculations, Trade246 offers a free pip calculator forex that can be used multiple times without the need for any login or registration. To use it, traders need to input the following basic details:

1. Currency Pair
2. Lot Size
3. Number of Lots
4. Currency Price of Pair

It then estimates how much the position’s value changes when the exchange rate moves by one pip.