What is a pip calculator?
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.
How to calculate the pip?
Trading 1 lot of EUR/USD with an account denominated in EUR
One pip in decimals0.0001
0.0001 * 100,000 = 10 => 10 / 1.13798 = 8.78750
For forex, the Pip Calculator works as follows:
Pip Value = (Pip in decimal places * Trade Size) / Market Price
Trading 1 lot (100 Oz) of GOLD with an account denominated in USD
0.01 * 100 = 1
Each tick is worth $1
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