Convert currencies and calculate forex trading costs. Enter amount, exchange rates, spread in pips, and lot size to see conversion results and costs.
A pip (percentage in point) is the smallest standard price movement in a currency pair, typically the fourth decimal place (0.0001) for most pairs. For JPY pairs, a pip is the second decimal place (0.01). Pips measure the change in exchange rates and are used to calculate profit, loss, and spread costs.
The spread is the difference between the buy (ask) and sell (bid) price and represents the broker's commission. A tighter spread means lower trading costs. Spreads vary by currency pair, time of day, and market volatility. Major pairs like EUR/USD typically have the tightest spreads.
A standard lot is 100,000 units of the base currency. Mini lots are 10,000 units, micro lots are 1,000 units, and nano lots are 100 units. Your lot size determines your position size and how much each pip movement is worth in your account currency.