Pip price

All currency pairs can be subdivided into three logical groups - pairs with direct quote (EURUSD, GBPUSD), pairs with inverse quote (USDJPY, USDCHF), and cross rates (GBPCHF, EURJPY etc.).

1. The pip price for currency pairs with direct quote is calculated according to the following formula

   [pip] = [lot size] × [tick size]

   where [tick size] - is the smallest possible change in price, for example for USDCHF and EURUSD it's 0.0001. For currency pairs with direct quote the pip price is constant.
   Example.
   EURUSD. Lot size is 100,000, tick - 0.0001. [pip] = 100000 * 0.0001 = $10.00
2. For currency pairs with inverse quote:

   [pip] = [lot size] × [tick size] / [current quote]

   For currency pairs with inverse quote the pip price varies depending on the current quote.
   Example.
   USDJPY. Lot size is 100,000, tick - 0.01. If current quote is 129.20, [pip] = 100000 * 0.01 / 129.20 = $7.74
3. For cross rates:

   [pip] = [lot size] × [tick size] × [base quote] / [current quote]

   where [base quote] - the current base pair quote.
   Example.
   GBPCHF. The lot size is J62500; if the current quote is 2.3000 and the base GBPUSD quote is 1.4550, [pip] = 62500 * 0.0001 * 1.4550 / 2.3000 = $3.95.

Try this link, http://www.babypips.com/school/know_your_ps_and_ls.html

It is discussed there about the pip and how it is calculated..

Forex Training 

What is a PIP? (Percentage in Point)

Pip plays a very important role in Forex Trading. It is the smallest changes in currency rates are measured by Pips. Since the Forex Market is characterized by relatively small fluctuations, the pip is, in most cases, the fourth digit after the decimal point. Yet in some currencies, such as the Japanese yen, the pip is the second digit after the decimal point. By using pips, the difference between the ask and bid prices can be measured at any given time, as well as the daily volatility of these values, which ultimately determines profit or loss.

How is the Pip Value Calculated?


Within the EUR/USD currency pair, for example:
From $1.5489 to $1.5490 – this is a rise of one pip in the currency's value.
If the bid price is at $1.5489 and the ask price is at $1.5486 – The spread between the bid and ask price is of 3 pips.
In an investment of $100,000, every pip is worth $10 (divide the sum of the investment by 10,000, as the pip is located in the fourth digit after the decimal point in this pair). 
Within the USD/JPY currency pair:
From 106.63 yen to 106.64 yen – this is a rise of one pip in the currency's value.
If the bid price is at 106.63 yen and the ask price is at 106.60 yen – The spread between the bid and ask price is of 3 pips.
In an investment of $100,000, every pip is worth a 1000 yen (divide the sum of the investment by a 100, as the pip is located in the second digit after the decimal point in this pair).

It is very important that you understand what a pip is in the Forex trading because you will be using pips in calculating your profits and losses. A “pip” stands for “Percentage in Point”. A pip is the smallest price movement of a traded currency. It is also referred to as a “point”.

For most currencies a pip is 0.0001 or 1/100 of a cent. You may think it is a ridiculously low value. However, take into account that most currencies are traded in lots of $100 000. For that amount a pip is $10.

PIP is an acronym for percentage in point.  This percentage in point represents the smallest value of measurement for currencies on the forex market.  Unlike dollars and cents which are calculated up to two decimal places, the currencies on the forex market are calculated up to the fourth decimal point.

Pip stands for percentage in point. It is the smallest price unit of a commodity or currency. In the Forex market prices are quoted to the fourth decimal point.

A pip is the smallest price movement of a traded currency. It is also referred to as a “point”.

PIP is an acronym for percentage in point.  This percentage in point represents the smallest value of measurement for currencies on the forex market.  Unlike dollars and cents which are calculated up to two decimal places, the currencies on the forex market are calculated up to the fourth decimal point.