In the Forex market, currencies always trade in pairs. When you exchange US dollars for euros, there are two currencies involved. For every foreign exchange transaction, you must exchange one currency for another. This is why the forex market uses currency pairs, so you can see the cost of one currency relative to another. The EUR/USD price, for example, lets you know how many US dollars (USD) it takes to buy one euro (EUR).
The profit you made on the above theoretical trade depends on how much of the currency you purchased. If you bought 1,000 units (called a micro lot) each pip is worth \$0.10, so you would calculate your profit as (50 pips * \$0.10) = \$5 for a 50 pip gain. If you bought a 10,000 unit (mini lot), then each pip is worth \$1, so your profit ends up being \$50. If you bought a 100,000 unit (standard lot) each pip is worth \$10, so your profit is \$500. This assumes you have a USD trading account.
```How much each pip is worth is called the "pip value." For any pair where the USD is listed second in the currency pair, the above-mentioned pip values apply. If the USD is listed first, the pip value may be slightly different. To find the pip value of the USD/CHF for example, divide the normal pip value (mentioned above) by the current USD/CHF exchange rate. For example, a micro lot is worth \$0.10/0.9435 = \$0.1060, where 0.9435 is the current price of the pair and subject to change. For JPY pairs (USD/JPY), go through this same process, but then multiply by 100. For a more detailed explanation, see Calculating Pip Value for Different Forex Pairs and Account Currencies.
```