Does a higher balance affect the pip value?

Beginner Questions
1

Hi there,
I don’t know if I read it somewhere or how I got this idea but I just want to make sure:

Example.
Let’s say I have a micro account and I only use .02 lot sizes in a $300 account, alright, when that account reaches 2,000 dollars, [B]will the pip value increase even if I continue using only .02 lot sizes[/B]?

Thanks in advance for any help anyone could provide about this.

Jesus.

2

When you have a higher balance you should, in line with sensible money management, be able to increase the size of your trade, thereby increasing your pip value.
If you keep at the same trade size, then your pip value remains as before

3

hello,

Pip value is affected by your trade size not the balance. So if you increase your trade size, pip value will increase however if only the balance is increased but trade size you enter remains the same say 0.02 lot, pip value will remain the same.

4

Thanks a lot for your answers Carlos Ray and hedgescalp, so, what I’m understanding is that 100 pips using .02 lots will give you the same in a $100 account than in a $5,000 account.

Therefore, in order to increase profits, lot sizes must be increased.

5

No, the pip value is not affected by the change of balance. The change of pip value means when price increases from 0.7180 to 0.7181. Thus, the change of price here is 0.0001. This is called pip value. However, on every fluctuation the price of the instrument might change. The change of instrument price is known to be the change of pip values because the price usually changes in pips.

6

It really [B][U]isn’t[/U][/B], James: that’s the definition of “pip”, not of “pip [I]value[/I]”.

Pip [I]value[/I] is a multiple of your position-size and the currency pair’s fixed, defined trade-value parameters. For example, in the case of EUR/USD, the fixed parameters are $10 per pip per full lot, so your own pip value regarding any individual trade is $10 per pip multiplied by your position-size measured in standard lots: for one lot it would be $10 per pip; for a mini-lot it would be $1 per pip; for a micro-lot it would be $0.10 per pip.

Pip value is not dependent on account size or on leverage used.