For any currency pair, a pip is the smallest unit of price fluctuation. It’s 0.01 Yen for pairs with the JPY as the counter currency. It’s 0.0001 of the counter or quotation currency for all other pairs.
Example: USDCADAssuming a standard 100,000 lot size, and USDCAD price of 1.01935, de- nominated in USD:
(0 0001 1 01935) 100 000 10 1935 CAD pip
Divide that value by the 1.01935, and you get $10/pip for a standard lot size,
$1 for a mini, and $0.10 for a micro account.
For the USDJPY,The exception to this rule occurs when the JPY is the quote currency (all the time with the majors) because pips are in increments of 0.01 not 0.0001.
Assuming a standard 100,000 lot size, and USDJPY price of 80, account denominated in USD:
0 01 80 100,000
12 50 standard lot 1 25 pip mini lot 0 125 pip per micro lot
Converting that to USD: 12.5/80 $0.15625/pip for a standard lot,
$0.01562/pip for a micro lot, and so on.
Cross-currency pip calculations will necessitate additional computations in addition to those listed above.
Because the base currencies are usually EUR or GBP, this rule is useful for those who trade the big pairs with EUR or GBP denominated accounts. As the basic currency, the EUR has precedence over all others, followed by the GBP. As a result, the EURGBP is the only major currency pair in which the GBP serves as the quotation or counter currency.