How do you calculate pip values?

# Thread: How do you calculate pip values?

1. Junior Member
Join Date
Mar 2006
Location
San Diego, CA
Posts
6

## 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. Join Date
Apr 2006
Posts
3
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. Newbie
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.