A pip measures a price change
For many forex pairs, a pip is 0.0001. For many yen pairs, the convention is 0.01. Some platforms display an additional decimal place, often called a pipette, representing a tenth of a pip. Check the instrument specification rather than assuming every decimal on the screen is a full pip. OANDA's pip guide illustrates these conventions.
OANDA: what is a pip in trading?
Count the movement before calculating money
Suppose EUR/USD moves from 1.0800 to 1.0810. The difference is 0.0010. Dividing by a pip size of 0.0001 gives 10 pips. A move from 150.20 to 150.35 in a yen pair with a 0.01 pip size is 15 pips. These are invented arithmetic examples, not recent market quotations.
Trade size changes the cash effect
For a position of 2,000 base-currency units in EUR/USD, a 0.0001 move corresponds to 0.20 US dollars before costs. A 10-pip move therefore corresponds to two dollars. A position five times larger would have five times that exposure to the same movement. Whether that is a gain or loss depends on the direction of the position.
Check the account currency
The calculation above produces an amount in the quote currency. If your account uses another currency, a conversion is needed. That conversion rate can change. Do not copy a pip value from a screenshot into a different account and assume it is still correct.
Do not treat a lot label as a complete specification
Platforms may express size in units, lots or contracts. Before using any calculator, identify how many base-currency units one displayed unit represents. Then record the minimum size and size increment. Rounding a calculated size upward can exceed the intended exposure; a trade below the platform minimum may be unsuitable for that practice budget.
A short practice exercise
Choose one demo instrument and record its pip size, quoted currency, account currency and minimum position size. Calculate the value of a five-pip move by hand, then compare it with the platform's estimate. Investigate any difference before placing even a simulated order. Fees, spread and financing are separate from the bare price-movement calculation.
Sources and further reading
OANDA: what is a pip in trading?
Educational material, not a recommendation to trade. Examples are hypothetical. Leveraged products can produce substantial losses. Source links provide context and do not imply an endorsement of ELITE FX HUB.