EUR/USD

EURUSD is a currency pair quoted in USD, and the result of a trade in it is the price movement measured in pips, multiplied by the value of one pip, then converted into the currency of your account. Everything below follows from three parameters of the instrument: contract size, pip step, and the conversion step at the end.

The two numbers that define the pair

EURUSD is a currency pair, and it is quoted in USD — the quote currency is the US dollar, so the base asset is the euro and the price is expressed in dollars. Two parameters from the instrument registry do most of the work in any calculation on this pair:

These values still need checking against the broker's own contract specification, so treat them as the current working figures rather than as permanently fixed ones. The contract size says how much of the base asset one lot represents. The pip step says how finely the quoted price moves: with five decimal places, the fourth decimal is the pip and the fifth is a fraction of it. A price change is therefore counted in whole pips, not in raw decimal places.

Worth reading alongside this: Position size · EUR/USD, and Value per pip · EUR/USD.

How one pip turns into money

The registry states the calculation directly: the price movement in pips is multiplied by the pip value, and that pip value equals 0.0001 × 100,000 in the quote currency (USD) per lot. The result is then converted into the currency of the account.

Read that as a chain of three steps, in this order:

1. The market moves a certain number of pips.
2. Each pip carries a value expressed in USD per lot, derived from the pip step and the contract size.
3. That USD figure is translated into the currency your account is denominated in.

The order matters. The pip value is fixed by the instrument's own parameters, not by the size of your position — position size scales the outcome, but it does not change what a pip is worth per lot. And the conversion step is the one most easily forgotten: a trader whose account is not held in USD sees a result that has passed through an exchange rate before it appears on the statement.

Where the calculator does the arithmetic

This page explains the meaning of each input; the calculator on the site performs the multiplication. That division of labour is deliberate. Pip value per lot, the effect of position size, and the conversion into account currency are all mechanical operations, and running them in verified code removes the possibility of a typo or a rounded intermediate figure quietly changing the answer.

So the useful thing to take from this section is not a number but a list of what you need to supply:

• the size of the price movement you want to evaluate, in pips;
• the position size, in lots;
• the currency your account is held in.

Everything else — the pip value per lot and the conversion — comes from the instrument parameters above. If you want a figure in your own currency, the account currency field is not optional; without it, the calculation stops at USD.

Pips, decimal places, and why both are quoted

EURUSD prices are quoted with five decimal places, while the pip step is 0.0001. Those two facts sit together on purpose: the pip is the fourth decimal, and the fifth decimal is a finer increment below it. A movement that shows up in the fifth decimal is smaller than one pip, which is why the number of decimal places matters when you are reading a price change and deciding how to count it.

When you feed a movement into the calculation, count it in pips as the registry defines them — the 0.0001 step — rather than in decimal places as displayed. A five-decimal quote showing a change in its last digit is not a one-pip change.

Working through the parameters in the right order

A practical sequence for anyone checking a result on this pair: confirm the contract size and pip step are still the ones listed here, since both are flagged for verification; express the price movement in pips; apply the pip value per lot as defined by 0.0001 × 100,000 in USD; scale by the number of lots; then convert into the account currency. Each stage uses a figure that is either published in the instrument registry or entered by you — nothing in the chain requires an estimate.

The one step that changes with your circumstances rather than with the instrument is the final conversion into account currency. The instrument parameters are the same for every trader on EURUSD; the account currency is not. That is why two accounts trading the same pair, the same direction, and the same number of lots can record different figures in their own denominations.