Every pip movement - whether up or down - will result in a profit or loss (P&L) - depending on the direction of your trade. P&L per pip is calculated based on the counter currency since you're always trading your base currency against it.

If you're buying EUR against the USD, any profit or loss from your trade will be based on the conversion rate of EUR to USD. So, the P&L for this trade is converted to USD terms in real-time. The P&L of a pip is always based on the size/volume of the trade and size of the pip.

Let's take an example:

Pip profit/loss = Trading volume x pip size

So when calculating for the EURUSD: 1 pip = 100,000 x 0.0001 = USD 10

This means that if you're trading with a volume of EUR 100,000, each pip up or down in the price will result in a USD 10 profit or loss.

Check out our Forex Trading Calculators for more.