FOREX · EURUSD · MARKET GUIDE
Euro / US Dollar
The most actively traded currency pair: pip conventions, lot sizes and a worked position-size example in US dollars.
Written by fxRuleBook Editorial TeamReviewed by: awaiting named reviewerLast updated
Overview
EURUSD shows how many US dollars one euro buys. It is shaped by the policy outlook of the European Central Bank and the Federal Reserve and by economic data from both regions.
Because the quote currency is USD, P&L is naturally in dollars; non-USD accounts need a conversion rate.
| Item | Typical convention |
|---|---|
| Standard lot | 100,000 EUR |
| Pip | 0.0001 |
| Fractional pip (tick) | 0.00001 |
| P&L currency | USD (quote currency) before conversion |
ILLUSTRATIVE POSITION-SIZING EXAMPLE
Sizing a EURUSD trade from the stop
| Account / risk | $10,000 at 1% = $100.00 |
|---|---|
| Hypothetical entry → stop | 1.1 → 1.095 (distance 0.00500) |
| Ticks / pips | 500 ticks · 50.0 pips |
| Loss per lot at stop | $500.00 |
| Position size (rounded down) | 0.2 lots |
| Risk after rounding | $100.00 |
Hypothetical round prices; 50-pip stop on standard lots.
Risk-management considerations
- Spreads can widen around central-bank decisions.
- Correlation with other USD pairs can stack exposure.
EURUSD journal template
Record these alongside each EURUSD trade.
- 01Pip distance to stop
- 02Scheduled ECB/Fed events
- 03Other USD pairs held
Frequently asked questions
What is a pip on EURUSD?
0.0001 on most platforms, with a fractional tick of 0.00001.
How much is one pip per standard lot?
About $10 per 100,000 EUR lot, since the quote currency is USD.
Educational content only. No live prices, historical data, signals or forecasts are shown. Contract details are illustrative until verified with your broker.