Now, let’s look at two examples of these calculations in action, first with EUR/USD and second with USD/JPY.

### Example with EUR/USD

Let’s say, for example, you’re looking to open long (buy) a position on EUR/USD trading at 1.1501 worth $40,000. To get the pip value, we’ll use the calculation mentioned above:

(0.0001 x $40,000) / 1.1501 = $3.48

The value of a single pip move will then be $3.48.

If the market moves in your predicted direction by ten pips from 1.1501 to 1.1511, you would’ve made a profit of $34.80. To calculate the profits, multiply the number of pips it moved by the value of a single pip (10 pips x $3.48 = $34.80).

However, if it moved against you by ten pips, you would’ve made a loss of $34.80; the calculations will stay the same by taking the number of pips moved against your prediction multiplied by the value of a single pip (10 x $3.48 = -$34.80).

### Example with USD/JPY

Let’s say you were looking to open a long (buy) position on USD/JPY trading at 140.05 worth $40,000. We can use the formula mentioned above for JPY pairs to calculate the value of a single pip move.

(0.01 x $40,000) / 140.05 = $2.86

A single pip move for this pair will be $2.86.

Now, the trade was successful and moved in your favour by ten pips from 140.05 to 140.15, giving you a profit of $28.60. To calculate the profits, you’d multiply the number of pips the market moved in your favour by the pip value (10 x $2.86 = $28.60).

However, if the trade moved against you by ten pips from 140.05 to 139.95, you would’ve made a loss of $28.60. You’ll use the same formula for calculating losses as you would for calculating profits (10 x $2.86 = -$28.60).