The monetary value of a single pip move for a given position size, denominated in the account currency.
For a standard lot of EUR/USD quoted in USD, a one-pip move is worth USD 10. Pip value changes with lot size, the quote currency, and the current exchange rate for non-USD-quoted pairs.
Knowing pip value is the first step in position sizing: it translates a stop-loss distance in pips into a concrete dollar risk, allowing traders to size positions so that a stopped-out trade loses a fixed percentage of account equity.
Worked Example
EUR/USD, USD account. USD is the quote currency, so pip value = 0.0001 × lot size - no conversion needed. Standard lot (100,000 units): $10/pip. Mini lot (10,000 units): $1/pip. Micro lot (1,000 units): $0.10/pip. For USD/JPY at 150.00 (USD is the base currency), pip value = 0.01 ÷ 150.00 × 100,000 ≈ $6.67/pip. With a 15-pip stop on 0.2 EUR/USD lots: risk = 15 × (0.2 × $10) = $30.