How do you calculate pip values?
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  1. #1
    Join Date
    Mar 2006
    Location
    San Diego, CA
    Posts
    6

    Default How do you calculate pip values?

    Why is it that if i make 1 pip on the eur/usd that i make $1 dollar in my mini account?? how does it work with other currency pairs??

  2. #2
    That's just the way it is. I know that sounds like a "parental" answer, but it's really the only answer to your question. As for the calculations:

    If the pair is in the format XXX/USD the price per pip will be fixed at:

    Standard Lot ($100,000) = $10 per pip
    Mini Lot ($10,000) = $1 per pip
    Micro Lot ($1,000) = $0.10 per pip

    If the pair is in the format USD/XXX then the price per pip will vary with the current price. ***ume for this example that the current price is 134.00.

    Standard Lot ($100,000) = 1000 / 134.00 = $7.46 per pip
    Mini Lot ($10,000) = 100 / 134.00 = $0.74 per pip
    Micro Lot ($1,000) = 10 / 134.00 = $0.07 per pip

    If the pair does not include USD, like EUR/GBP for example, then the calculation is much more complex. In fact it's so complex that I don't want to confuse you with it. And I can't remember how to do it either

  3. #3
    Join Date
    Apr 2007
    Posts
    15
    I sugest you to go to babypips School section. There is chapter that explains clearly your doubt related to pips values

    Greatings.

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