Pips Explained
If a trader tells you that they made a hundred pips profit, you don’t learn anything about their financial situation. To understand the dimensions of one pip in dollars in this position multiply 0.0001 by the lot size.
To calculate profit or loss from pips where the dollar is the quote currency, you just need to grasp that one pip is $0.0001 x lot size. If you have another currency as the quote currency, the pip is naturally in that currency, and you can multiply by the exchange rate to know the pip value in dollars. All this may appear confusing at first glance but anyone who starts trading will extremely soon understand what a pip means in practice.