**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.