Pip value on loss - what am I missing?

[gophigure]

Maybe I just woke up in a fog this morning, but I’m having trouble figuring a pip value. On a demo account, I just took a loss on EURGPB that I can’t seem to calculate. I took a loss of 25.2 pips on an order for .3 lots (3 minis) and the trading loss shows $118.65. That comes to $1.57 per pip, but with the price at .87079, I’m figuring the pips should have been worth .87 and my loss valued at about $65.77. I know I haven’t had my second cup of coffee yet, but what am I missing?

DUH! Got my coffee, recalculated, and it adds up correctly this time. Initially made the mistake of using a pip calculator from some other website. All is well, except of course that I had a losing trade of $118.65!

[soul786]

DUH! Got my coffee, recalculated, and it adds up correctly this time. Initially made the mistake of using a pip calculator from some other website. All is well, except of course that I had a losing trade of $118.65!

Haha the road’s bumpy but with persistence you’ll be on a paved highway

[MattJones]

@soul786

It’s a really nice motto to live by. Persistence seems to be the answer to everything.

Best Regards,
Matt Jones .

[ThePhoenix]

That comes to $1.57 per pip, but with the price at .87079, I’m figuring the pips should have been worth .87 and my loss valued at about $65.77. I know I haven’t had my second cup of coffee yet, but what am I missing?

DUH! Got my coffee, recalculated, and it adds up correctly this time. Initially made the mistake of using a pip calculator from some other website. All is well, except of course that I had a losing trade of $118.65!

What the price is at has no bearing on your per pip value. The lot size you choose and any swap rate for the pair dictate the per pip value.

So, if you choose a lot size that =$1 per pip and get a winning trade of 50 pips, you’ve made + $50, regardless of what price you bought it at.

The price and price action, from entry, only dictates how many pips you win or lose, not what they are worth.

[n_aftab]

Hi,

The base currency will be a factor

Have a look at the calculator, even though it a profit calculator, it will show you what 1 pip is worth for the pair you are looking at.

Profit Calculator | Calculate Forex Profit - OANDA FXTrade

Hope that helps

N

[gophigure]

What the price is at has no bearing on your per pip value. The lot size you choose and any swap rate for the pair dictate the per pip value.

So, if you choose a lot size that =$1 per pip and get a winning trade of 50 pips, you’ve made + $50, regardless of what price you bought it at.

The price and price action, from entry, only dictates how many pips you win or lose, not what they are worth.

Now wait a minute. The price has no bearing on the pip value? So 50 pips of USDJPY on 6/1/07 versus the same 50 pips on 11/1/09 are of the same value? By my calculation, the value on 6/1/07 would be $40.50 while those same 50 pips on 11/1/09 are worth $58.00. Maybe I misunderstood the point you are trying to make, but the price of the underlying currency pair not only has a “bearing” on the per pip value, it is [U]the[/U] determining factor when combined with the lot size.