How to Calculate Pip Values?

In currency pairs where the counter currency (the second symbol in a pair) is the US dollar, for example, EUR/USD, GBP/USD or AUD/USD, one pip always equals US$10, for every 100,000 currency units. For other currency pairs, where the USD is the base currency (the first symbol in a pair), one pip will usually be worth less than US$10 for every 100,000 currency units, and it varies slightly due to fluctuating exchange rates.

Here is the formula that is used to calculate pip value:

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Let’s say you want to calculate how much one pip is worth for US$100,000 of USD/CHF at the time when the USD/CHF exchange rate is around 0.9890.

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