What is 20 pips to USD? Many budding traders want to know the answer to this question, especially because of the popular goal to get 20 pips a day on the forex markets. Alternatively, they may be attempting a 20 pip challenge. But what is 20 pips to USD, and how do you convert it? In this article, we’ll give you the answers
What is 20 pips to USD?
The answer to this question depends entirely on the size of the trade. On a standard 1 lot trade where 1 lot is 100,000 units, and the quote currency (the second currency in a currency pair) is the US dollar, then 1 pip is $10.
Let’s take, for example, GBP/USD:
- 1 standard lot: 1 pip = $10.
- 0.1 standard lot or 1 mini lot: 1 pip = $1.
- 0.01 standard lot or 1 micro lot: 1 pip = $0.10.
Of course, things get a little more complicated when the size of the trade is much different, and/or the US dollar is not the quote currency.
You can use the tool below to work out what is 20 pips to USD, or indeed any amount of pips in any currency. Simply type in the number of pips, the currency pair you’re trading, the size of the trade, and the currency of your forex trading account, and the tool will tell you how much money the given amount of pips is. If you find this tool useful, be sure to check out our complete list of recommended forex calculators.
Calculating it yourself
While a calculator is convenient, it’s actually not that difficult to calculate pip size yourself.
To do this, simply divide 0.0001 by the exchange rate, and then multiply this figure by the amount of units you are trading.
Let’s make a quick example. Your account is in USD. You place a 0.25 lot trade of the Euro to the Australian Dollar (EUR/AUD).
At the time of writing, the EUR/AUD exchange is 1.49136.
So we divide 0.0001 by 1.49136, which gives us 0.00006705289.
We then multiply 0.00006705289 by the number of units we’re trading. It’s a 0.25 standard lot trade – so that’s 25,000 units.
0.00006705289 multiplied by 25,000 is 1.67632.
1 pip is therefore worth just under $1.68 USD. Easy!