Pips and lot size

The smallest standard price move in a currency pair, and how it measures profit and loss.

Trading 101Lesson 8 of 8

All lessons

By the end of this lesson you'll be able to:

01Define a pip
02Count pips in a price move
03Explain pip value and its link to lot size

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is a Pip in Forex? A Beginner's Guide to Currency Pricing

Key terms

Pip Pip Value Lot Size Spread

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
For most currency pairs, one pip is a move in which decimal place?
Question 02
EUR/USD moves from 1.1000 to 1.1025. How many pips is that?
Question 03
In what unit do traders measure profit, loss, and spread?
Question 04
GBP/USD goes from 1.2500 to 1.2460. That is a move of:
Question 05
The cash value of one pip depends on what?
Question 06
A wider spread means you cross more pips on entry, so how does the position start?
Question 07
On a standard lot, about how much is one pip typically worth?
Question 08
Your target is 20 pips and your stop is 10 pips. What is your risk-reward?
Question 09
For JPY pairs like USD/JPY, one pip is usually which decimal place?
Question 10
If a pip is worth $1 and you gain 30 pips, your profit is:

Answered 0 of 10 · pass 70% (7/10) to complete

Trading 1018 of 8

Pips and lot size

The smallest standard price move in a currency pair, and how it measures profit and loss.

Trading 101Lesson 8 of 8

All lessons

By the end of this lesson you'll be able to:

01Define a pip
02Count pips in a price move
03Explain pip value and its link to lot size

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is a Pip in Forex? A Beginner's Guide to Currency Pricing

Key terms

Pip Pip Value Lot Size Spread

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
For most currency pairs, one pip is a move in which decimal place?
Question 02
EUR/USD moves from 1.1000 to 1.1025. How many pips is that?
Question 03
In what unit do traders measure profit, loss, and spread?
Question 04
GBP/USD goes from 1.2500 to 1.2460. That is a move of:
Question 05
The cash value of one pip depends on what?
Question 06
A wider spread means you cross more pips on entry, so how does the position start?
Question 07
On a standard lot, about how much is one pip typically worth?
Question 08
Your target is 20 pips and your stop is 10 pips. What is your risk-reward?
Question 09
For JPY pairs like USD/JPY, one pip is usually which decimal place?
Question 10
If a pip is worth $1 and you gain 30 pips, your profit is:

Answered 0 of 10 · pass 70% (7/10) to complete

Trading 1018 of 8

Pips and lot size

By the end of this lesson you'll be able to:

Read the guide first

Quick check

For most currency pairs, one pip is a move in which decimal place?

EUR/USD moves from 1.1000 to 1.1025. How many pips is that?

In what unit do traders measure profit, loss, and spread?

GBP/USD goes from 1.2500 to 1.2460. That is a move of:

The cash value of one pip depends on what?

A wider spread means you cross more pips on entry, so how does the position start?

On a standard lot, about how much is one pip typically worth?

Your target is 20 pips and your stop is 10 pips. What is your risk-reward?

For JPY pairs like USD/JPY, one pip is usually which decimal place?

If a pip is worth $1 and you gain 30 pips, your profit is:

Pips and lot size

By the end of this lesson you'll be able to:

Read the guide first

Quick check

For most currency pairs, one pip is a move in which decimal place?

EUR/USD moves from 1.1000 to 1.1025. How many pips is that?

In what unit do traders measure profit, loss, and spread?

GBP/USD goes from 1.2500 to 1.2460. That is a move of:

The cash value of one pip depends on what?

A wider spread means you cross more pips on entry, so how does the position start?

On a standard lot, about how much is one pip typically worth?

Your target is 20 pips and your stop is 10 pips. What is your risk-reward?

For JPY pairs like USD/JPY, one pip is usually which decimal place?

If a pip is worth $1 and you gain 30 pips, your profit is: