Pip value must end in the currency of your account

Quote currency sets the starting value

For a conventional forex pair, profit and loss begin in the quote currency—the second currency in the symbol. EURUSD produces a USD pip value, USDJPY produces a JPY pip value and EURGBP produces a GBP pip value.

When the account uses the same currency, no further conversion is needed. When it differs, the pip value must be converted before calculating the lot size.

USDJPY example in a USD account

One standard-lot pip on USDJPY is approximately JPY 1,000 when one pip is 0.01. If USDJPY is trading at 160.00, converting JPY 1,000 back into USD gives:

Because the exchange rate changes, the USD value of the pip also changes. Using a fixed $10 pip value for USDJPY would materially overstate or understate the correct position size.

Cross-pair example

For EURGBP in a USD account, the pip value begins in GBP. A one-lot pip is approximately GBP 10, which then needs conversion through GBPUSD. If GBPUSD is 1.30, the estimated USD value is:

If the account were denominated in EUR instead, GBP would need conversion into EUR using the relevant current rate.

Why a live rate is used

A conversion rate from yesterday can be close enough for a rough estimate but is not exact. LotSizely retrieves reference conversion rates for supported non-USD quote currencies and shows the rate date below the result. MT5 uses its own available market prices and broker calculation rules, so its order estimate remains the final check.

Three currencies to identify

1. Account currency: the unit in which balance and risk are measured.
2. Profit currency: the unit in which the symbol initially calculates profit and loss.
3. Conversion pair: the market rate that converts profit currency into account currency.

Once all three are known, use the converted pip value in the normal lot-size formula.

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