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 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’ and the Pip Calculator will determine how much each pip is worth.
For forex, the Pip Calculator works as follows:
Pip Value = (Pip in decimal places * Trade Size) / Market Price
- 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, and the Pip Calculator works as follows:
Tick Value = Tick in decimals (0.01) * Number of Oz
- Trading 1 lot (100 Oz) of GOLD with an account denominated in USD
- 0.01 * 100 = 1
- Each tick is worth $1
The FxPro Pip Calculator is also available for mobile devices as part of the FxPro Tools app. Download the app today, on iOS and Android, to have access to all the trading calculators you need, whenever and wherever you need them.