How pip value is calculated for GBP/USD
GBP/USD is quoted in US dollars, so its pip value is already in USD: 0.0001 × 100,000 = $10.00 per standard lot, whatever the price. For a USD account a pip on GBP/USD is always worth $10.00 per lot, $1.00 per mini lot and $0.10 per micro lot.
Worked example
An account of $10,000.00 risks 1% on a GBP/USD trade with a stop loss 30 pips from entry.
- 1. Risk amount: $10,000.00 × (1% ÷ 100) = $100.00
- 2. Pip value per standard lot: 0.0001 × 100,000 = $10.00
- 3. Position size: $100.00 ÷ (30 pips × $10.00) = 0.33 lots
Most brokers accept lots in steps of 0.01, so round down to 0.33 lots. If the stop loss is hit, the loss is about $99.00, before spread, commission and any slippage.
These are the calculator's default inputs above, so its result matches.