Pips, margin and profit: three different numbers
Separate price movement, required margin, and an estimated trade outcome before reading a forex calculation.
Put it into practice
Try the tool Pip Value Calculator · Free, with local processing.
Three numbers, three different jobs
| Number | What it describes | What it does not tell you |
|---|---|---|
| Pip value | The money value of a unit of price movement | Whether a trade will win |
| Required margin | An estimated deposit for the position | Your maximum possible loss |
| Profit or loss | An outcome from specified entry and exit assumptions | A future return |
A pip measures a price move
For many currency pairs a pip is 0.0001; for JPY-quoted pairs it is commonly 0.01. Fractional quote digits are different from full pips. A pip's money value depends on position units and the conversion into account currency. Confirm the convention for your instrument using your broker specifications and OANDA's pip explanation.
Put this guide into practice with the Pip Value Calculator. Review the tool’s inputs, example and limitations alongside your result.
Margin is a deposit estimate
For an illustrative 100,000 EUR position and EUR/USD at 1.10, the USD notional amount is 110,000. Dividing by an assumed leverage denominator of 30 gives estimated margin of 3,666.67 USD. Try the Margin Calculator. Real requirements can depend on the broker and position tiers; margin is not a maximum-loss measure.
Profit depends on direction and size
Buying 10,000 EUR/USD units at 1.1000 and exiting at 1.1050 gives 50 USD before costs. Selling over the same rising-price move reverses the sign. Explore the Profit / Loss Calculator and account-currency conversion hints.
Use market context carefully
The Forex hub offers an optional third-party currency widget. Its displayed prices are separate from calculator inputs and can differ from executable broker quotes. Enter your own rate assumptions, check costs, and treat the result as a learning estimate rather than a trading instruction.
Help us improve this guide. Include the article title and the part you found confusing.
Send a correction or suggestion →Ready to try it?Open Pip Value Calculator