Pip value for Lakh???
Like to know what is the value per pip for 1 lakh?
1 micro lot (1000 contract) = $0.10
1 mini lot (10,000 contract) = $1.00
1 standard lot (100,000contract) = $10.00
But am not too sure what is 1 lakh (????? contract) = $....???/
Thanks for the help anyone??
A "lakh" is a number, evidently used in India, and evidently derived from ancient Sanscrit.
Most forex traders have never heard the word "lakh". Brokers in the English-speaking world do not use this number.
In the English-speaking world, when you refer to 1 mini-lot as 10,000, you actually mean 10,000 units of the base currency in a currency pair.
A common way of designating position size is to use the letter K to designate thousands of units (of the base currency). Thus,
1K is a micro-lot, 10K is a mini-lot, and 100K is a standard lot. A very large postion, say 100 million units of the base currency, would be 100,000K. Size is not specified in "lakhs".
So, your first step will be to convert "lakhs" to "thousands" --- in other words, translate from Sanscrit to English.
In your question, you said that the pip-value is $0.10 per micro-lot, $1 per mini-lot, and $10 per standard lot. But, this is true ONLY for currency pairs in which the USD is the cross-currency.
If you are trading the Indian currency, the rupee, then you will find that the rupee (INR) is the cross-currency in most INR-pairs. For instance, the dollar/rupee is USD/INR, the pound/rupee is GBP/INR, and the euro/rupee is EUR/INR.
Therefore, the pip-values for INR-pairs will NOT be as you have stated in your question. If you are trading rupee-pairs through a broker, that broker's trading platform should tell you the correct pip-value per lot for the pairs you are trading. If not, call your broker and ask.
If you know the pip-value for one standard lot for a particular pair, you can easily figure the pip-value for any other position size by simply dividing or multiplying.
Note: all INR-pairs in which the INR is the cross-currency, will have the same pip-value per lot --- in the same way that all yen-pairs have the same pip-value per lot (because, in yen-pairs, the JPY is always the cross-currency).
I hope this helps you.
Last edited by Clint; 04-22-2009 at 09:45 PM.
Thanks for the info.....
Is standard lot the biggest lot size traded in Forex?
If NO.....then what will be the next type of lot size traded? And what is the value per pip?
We know that, beside standard lot ($10.00 per pip) there is the mini lot ($1.00 per pip) then there is the micro lot ($0.10 per pip) and there are some broker offer nano lot ($0.01 per pip)
My question again:
Is there any other lot size traded besides those lot size mentioned? What is the value per pip if there is...........
I am basing on the base as USD.....I am aware about the conversion when traded against accordingly.....
Is there any other type of lot size traded in forex besides these commonly known lot size of standard lot, mini lot, micro lot, nano lot?
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