Using the below examples and the order of math how do we calc the value for a USD account trading a pair that does not contain the USD as in the EUR/CHF or other cross currencies... ??
How do i use a USD quoted EUR/USD or a non USD quoted USD/CHF to convert the pip value into USD... ??
Please use the "(tick/quote) x lot" order of math like the USD/XXX pairs in the example below instead of the tick*lot/quote as it makes more sense to me... =]
Let's assume we will be using a 100,000 unit (standard) lot size. We will now recalculate some examples to see how it affects the pip value.
USD/JPY at an exchange rate of 119.80 (.01 / 119.80) x 100,000 = $8.34 per pip
USD/CHF at an exchange rate of 1.4555 (.0001 / 1.4555) x 100,000 = $6.87 per pip
In cases where the U.S. dollar is not quoted first, the formula is slightly different.
EUR/USD at an exchange rate of 1.1930 (.0001 / 1.1930) X 100,000 = 8.38 x 1.1930 = $9.99734 rounded up will be $10 per pip
GBP/USD at an exchange rate or 1.8040 (.0001 / 1.8040) x 100,000 = 5.54 x 1.8040 = 9.99416 rounded up will be $10 per pip.