How are $/pip calculated per 10k lot? If you type in 100,000 10k lots for UJ, you will see the number fluctuate every second. Just something I noticed whch made me curious.
Err. My question is how are pip values calculated? For instance that website says:
“USD/JPY: 1 pip = $.77;” for 10k lot.
That no longer rings true.
E/U is still 1 pip = $1.00. for 10k lot. Why is it $1.00 and not $1.50? UJ was $0.77 when the article was written. Now it’s $1.011495.
Depends on the spread…should spread widen or close relative value of pair changes , right?
I use a general rule of thumb, 1 lot equals 10$ per 1 pip movement.
That’s great. It still doesn’t answer my question. Your rule of thumb won’t work for certain pairs. GBP/NZD is $.078 per pip right now (10k lot).
[QUOTE=“kashix;521771”]Err. My question is how are pip values calculated? For instance that website says:
“USD/JPY: 1 pip = $.77;” for 10k lot.
That no longer rings true.
E/U is still 1 pip = $1.00. for 10k lot. Why is it $1.00 and not $1.50? UJ was $0.77 when the article was written. Now it’s $1.011495.[/QUOTE]
Uhm… Did you even read the article? They give you the formula on how to calculate the pip value… They were using the value of the usdjpy when it was written… If you insert today’s value you will get the pip value today.
When the article was written the value of usdjpy was 130.46
So the formula was (.01/130.46) x 10,000usd = $0.77
Today it would be (.01/98.50) x 10,000usd= $1.01
Exactly pizza. Nice reply.
My bad. Misunderstood the article. So as price moves, price per pip changes as well. Interesting! Reason why I didn’t get it was because I saw UJ changing in numbers when I entered a giant lot size and not EU.
When you have a USD account, only currency pairs that end in USD (hence, the cross currency being USD) remains constant as price changes.
E.G
1 Yard will ALWAYS equal $100,000 per pip, hence 1,000,000,000 units
1 Lot will ALWAYS be $10 per pip, hence 100,000 units
However when dealing with pairs that dont end in USD, such as USD/JPY a standard lot value will change as price changes.
Thank u. Confusion cleared up.
ahem a standard lot is 100k
so that would be 7.8 USD per pip if trading 1 standard lot
wich is approx equal to my rule of thumb of 10$ per pip, per lot
of course i am aware that on exotic pairs it will not so precise, but thats enough i think to calculate a general risk value