Standard a/c = $100,000 - Pip Value $10
Mini a/c = $10,000 - Pip Value $1
Micro a/c = $1,000 - Pip Value $0.10
Nano a/c = smaller than $1,000? - Pip Value - I don’t know
But desipte knowing the above, we still have to use the Pip Calculator… Is this because of our personal parameters (ie leverage we decide to use and risk ratio?) - so that for everyone it’s different and the above Standard/Mini etc are just guidelines. I hope this makes sense.
When I first read the above in school, I thought ‘oh, that’s simple - I can see how much a pip is worth’ but I now know that we have to ‘calculate’ the pip for each trade. Am I on the right track?
Above pip value is right for EUR/USD, GBP/USD, AUD/USD etc.
But With a similar contract, the Pip don’t have the same value on every currency pairs. the formula is:
S: Size of the contract
dPIP: pip definition (0.0001, 0.001…)
XXX: the first currency
YYY: the second currency
the value of the Pip for the pair XXXYYY = SdPIPYYYUSD
The following table is updated in real time.
I don’t use a pip calculator, However I figure where I want my stop to be and if it’s more or less than my risk allowance, then i adjust the size of my position to compensate. For example if my risk allowance is $20, (a mini account = $1.00 @ 20 pips), but if the the stop is 30 pips or $30, then I reduce my position from 1 unit, to .67 of a unit so that the pip value is .67 and if it hits that -30 pip stop, it’s still only -$20…same if the stop is 40pips away…I trade 1/2 a position and each pip is 50cents instead of a dollar.
Yes. You are exactly right for EUR/USD. For trading this pair, you need to consider only round figures. Pip value for GBP/USD, AUD/USD and NZD/USD are also same as that of EUR/USD
