Calculate The Pip Value of Your Position Pips are used to measure the changes in the assets price. Depending on the currency pair and the contract size, one pip is worth a different amount of money. The pip value can be calculated and expressed in different currencies, for example – the base or the quoted currency, or the currency of your trading account, if it is different from the two in the pair. The pip is the smallest amount by which a currency quote can change. The prices of forex pairs are typically quoted to the 4th decimal place, with the exception of JPY pairs, which are quoted to the 2nd decimal place. The digit in the last position of the quote is the pip. For example, if the EUR/USD price moves from 1.1234 to 1.1236, it has moved up by 2 pips. If the price then moves from 1.1236 to 1.1224, it has moved down 12 pips. If the prices are quoted to the 5th decimal place (or to the 3rd decimal place for JPY pairs), the smallest change in the quote will be 0.00001 (or 0.001 for JPY pairs). This is called Pipette. Still, 1 pip change remains the change of the 4th (or the 2nd for JPY pairs) digit after the decimal point (i.e. 0.00010 or 0.010 for a JPY pair respectively). If we take the same example, now with 5 decimal places for the EUR/USD pair, it will look like this: 2 pips movement up will mean a change from 1.12345 to 1.12365. And 12 pips movement down is a change from 1.12365 to 1.12245. To calculate the pip value of your position, let’s input some data for it. ✓ Account Base Currency – USD (this is your account currency); Calculations: First, we calculate the pip value for each lot size in terms of the quoted currency of the currency pair: For 1 micro lot we have: 1 000 units * 0.0001 CAD = 0.10 CAD For 1 mini lot: 10 000 units * 0.0001 CAD = 1 CAD And for 1 standard lot: 100 000 units * 0.00001 CAD = 10 CAD Then we use the following formula: or Pip Value = (10 * 2) / 1.28000 = 15.62 USD So every 1-pip movement of our 2-standard-lots position will be worth 15.62 USD. The Pip Value Crypto calculator computes the amount one pip of your crypto position is worth in the currency of your account. The calculation of the pip value for your crypto position are similar. First, the following parameters are required: ✓ Account Base Currency – USD (this is the currency of your trading account); Calculations: First, we need to know the pip value of the lot, which we trade, and for cryptocurrencies, that depends on the decimal places. If the pair is quoted to the 2nd decimal place, then 1 pip will be worth 0.01 of the quoted (second) currency. So, if we are trading BTC/USD, for example, and the pair is quoted to the second decimal place, the smallest change will be worth 0.01 USD, or that is the pip value per unit for the pair. If it is quoted to the 4th decimal place, then 1 pip (or the smallest change) will be 0.0001 USD. The formula that calculates the Pip Value for a given position is this: Pip Value = (Cryptocurrency Units per 1 Lot * Position Volume) / 1Cryptocurrency Decimals or in our example: Pip Value = (1 * 2) / 12 = 0.02 USD The Pip Value Shares calculator computes the amount one pip of your shares or index position is worth in the currency of your account.Available for Forex, Crypto and Shares Markets
Forex Pip Value Calculator
✓ Account Type – Standard Lot – 100 000 units (the contract size, or the size of the lots you trade with your account);
✓ Position volume (Lots) – 2 (the volume of the position – how many lots you want to trade);
✓ Currency Pair – AUD/CAD (the forex pair you want to trade);
✓ Exchange Rate USD/CAD – 1.28000 (the calculator will need you to input an additional exchange rate, depending on your Account Base Currency and the Currency Pair. If the account currency and the quoted (second) currency in the pair are the same, just ignore the field or type in “1”);
So 1-pip movement of a 1-micro-lot position is worth 0.10 CAD.
Meaning that 1-pip movement of a 1-mini-lot position is worth 1 CAD.
Here, 1-pip movement of a 1-standard-lot position is worth 10 CAD.
Pip Value (in account currency) = {Pip Value (for lot size in quoted currency) * Position Volume} / Exchange RateCrypto Pip Value Calculator
✓ Currency Units Per Lot – 1 (the size of one Lot may differ with each cryptocurrency or broker);
✓ Cryptocurrency Decimals – 2 (the decimal places that are used and meaningful for the quotation of the cryptocurrency pair);
✓ Position Volume (Lots) – 2 (the number of Lots that you plan to trade with this position).
Shares Pip Value Calculator
In the stock market, the smallest change is measured in points, not in pips, but the principle is the same. If you have decided to trade in the stock market and you want to calculate the Point (Pip) Value of your position, here’s the data that needs to be entered:
✓Account Base Currency – EUR (your account currency);
✓ Share (Index) Margin Currency – AUD (the currency in which the share or index is quoted);
✓ Exchange Rate AUD/EUR – 0.71310 (the calculator needs this exchange rate for the computation. If your account currency is the same as the margin currency of the share or index, just ignore this field or enter “1”);
✓ Position Volume (# of Shares) – 15 (the number of shares that you plan to trade with this position);
Calculations:
For any pair in the stock market, quoted to the second decimal place, one pip is worth 0.01 of the quoted currency per unit. The formula that calculates the Point Value for a shares/index position is the following:
Point (Pip) Value = Position Volume * Exchange Rate * 0.01
In this example this is:
15 * 0.71310 * 0.01 = 0.11 EUR
So, your position of 15 shares has a pip value of 0.11 EUR per pip.
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