What is the pip value?

Pip value is the effect that a one-pip change in price has in a dollar amount.

A pip value is calculated based on the quote currency (the second currency) of a pair.

For all currencies (except the JPY) a pip is one unit of the 4^th decimal point and 1 point is one unit of the 5^th decimal point.

For the Japanese yen, a pip refers to one unit in the 2^nd decimal point and a point refers to one unit of the 3^rd decimal point.

A pip value is calculated as follow in the quote currency (second currency)

For all pairs (except JPY) 100,000 x 0.00010 = 10

For JPY pairs 100,000 x 0.010 = 1000

Example:

For EURUSD the pip value is 10 USD

For USDCAD the pip value is 10 CAD

For USDJPY the pip value is 1000 JPY

To know the pip value in USD, you need to convert it to USD at the current spot rate.