Forex traders measure their losses and gains in pips. pip calculator is short for “percentage in point.” It is the unit of measurement for expressing the rise or fall in the value of currency pairs. what is pip You can calculate your gain or loss in pips using a pip calculator, also known as Forex calculator.
For example, the USD/CAD currency price may move from 1.3453 to 1.3454. That would be equal to a gain of 1 pip. A pip is usually the number in the last decimal place of a currency price quote.
To calculate pip values using a pips calculator, all you need are the number of pips and position size. Also, you need the market price of the instrument you are trading.
For forex, the Pip Calculator works as follows:
Pip Value = (Pip in decimal places * Trade Size) / Market Price