To manage risk more effectively, it is important to know the pip value of each position in the currency of your trading account.
The FxPro Pip Value Calculator does this for you. All you have to do is enter your position details, including the instrument you are trading, the trade size and your account currency. Click ‘Calculate’ to determine how much each pip is worth.
For forex, the pip value calculation is performed as follows:
Pip Value = (Pip in decimal places * Trade Size) / Market Price
Example: Trading 1 lot of EUR/USD with an account denominated in EUR.
- One pip in decimals = 0.0001
- Trade Size = 100,000
- Exchange Rate = 1.13798
- 0.0001 * 100,000 = 10
- 10 / 1.13798 = 8.78750
- Each pip is worth €8.79
For metals you calculate tick value instead of pip value. Tick value calculation is performed as follows:
Tick Value = Tick in decimals (0.01) * Number of Oz
Example: Trading 1 lot (100 Oz) of GOLD with an account denominated in USD.
0.01 * 100 = 1
Each tick is worth $1.