How to calculate the pip value for EUR/USD?

Hi!

Here is what I’ve constructed in Excel based on reading some Money Management articles.

The calculation below is presented for a micro account:

[B]INPUT[/B]
Account Size: $9000
Stop Size (pips): 50
Risk: 2% ($180)
1 lot size: 1000 units
Pip Value: $0,10/pip
Stop Size * Pip Value: $5,00

[B]OUTPUT[/B]
Position Size: 36,00 lots
"Round Down" Position Size: 36,00 lots
True Leverage: 4:1
Resultant Pip Value: $0,40

In order to respect your MM you have to take the following position:
Leverage * Position Size: $36.000
The PIP value is: $3,60

The only thing I’m not sure of is the calculation for the PIP value… I have calculated it like this:

(Leverage * Account Size) / 10.000 or (4 * 9000) / 10.000 = $3,6

Is this correct or is the last calculation wrong? I’d be very thankful if someone could explain this to me.

Thanks!

A simpler calculation would seem to be lots times base pip value (36 * $0.10). You already have both values. No need to recalculate it all, right?

Thank you!