What this calculator does
A pip is the standard unit of price movement for many FX pairs. Pip value converts that movement into account-currency risk.
Why it matters
Without pip value you cannot translate a 20-pip stop into a money risk — so you cannot size the lot correctly.
Example mindset
If you risk $50 and the stop is 25 pips, you need pip value × lots ≈ $2 per pip.