Hi, I’m currently in pre-school and I’m trying to understand how to calculate pips, lesson 20.
In the first example with the USD/CAD I can’t for the life of me come up with the same answer they did.
This is the example given:
To be read as 1 USD to 1.0200 CAD (or 1 USD/1.0200 CAD)
(The value change in counter currency) times the exchange rate ratio = pip value (in terms of the base currency)
[.0001 CAD] x [1 USD/1.0200 CAD]
Or simply as:
[(.0001 CAD) / (1.0200 CAD)] x 1 USD = 0.00009804 USD per unit traded
But when I do my calculations…
a) 0.0001 x 1.02 = 0.000102
b) 0.0001 x (1 / 1.02) = 9.8039…
c) 0.0001 / 1.02 = 9.8039…
d) 0.0001 / (1 / 1.02) = 9,803.9215…
I’m feeling so dumb because I’ve tried everything but my calculator is like lolno. please help
The fxpro online calculator I use gives reasonable-sounding answers to the inquiry: "what is the value of a standard lot of $100k in, say, the GBPUSD pairing ($10, according to their calculator). But when I provide the same $100k purchase amount and enter BTCUSD (bitcoin/dollar, obviously), I get an answer of $1,000. This seems outrageous, though more likely there’s something I am simply not understanding. A move of $21.70 this morning could not possibly be returning $2,170 to me, correct?! Can someone straighten this out for me? If there’s a better online website that does the calculation for one I would appreciate that, as well. Thanks.
