Pips, Lots and Pip Value
A pip is commonly 0.0001 for most pairs and 0.01 for JPY-quoted pairs. An additional decimal is a fractional pip. Price display precision and pip size are separate concepts.
Learning outcomes
✓ Explain pip and fractional pip
✓ Explain lots and contract size
✓ Explain converting pip value
Course curriculum
1. Pip and fractional pip · 12 min
A pip is commonly 0.0001 for most pairs and 0.01 for JPY-quoted pairs. An additional decimal is a fractional pip. Price display precision and pip size are separate concepts.
2. Lots and contract size · 12 min
A standard lot represents 100,000 base units in this simulator. A 0.10 lot represents 10,000 and a 0.01 lot represents 1,000. Position exposure grows with lot size.
3. Converting pip value · 12 min
Pip value in quote currency equals lots × contract size × pip size. Multiply by the quote-to-account conversion rate to express it in the account currency. Conversion rates can change.