The formula to calculate 1 pip value is:$$\text{1 Pip Value} = \text{Contract Size} \times \text{Pip Size}$$1 Pip Value=Contract Size×Pip Size

Where:

• Contract Size = the standard lot size (usually 100,000 units for Forex)
• Pip Size = the value of the smallest price movement (usually 0.0001 for most currency pairs)

Example: EUR/USD

• Price: 1.08212
• Contract Size: 100,000 units
• Pip Size: 0.0001
• Margin Currency: USD

$$\text{1 Pip Value} = 100,000 \times 0.0001 = 10 \text{ USD}$$1 Pip Value=100,000×0.0001=10 USD

✅ Therefore, 1 pip movement = $10 for a standard lot of EUR/USD.