pip value and volume

Discussion in 'Forex Education' started by Derbel Idriss, May 8, 2017.

  1. Derbel Idriss

    Derbel Idriss Newbie

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    i knew this this methode for calculing pip value but there is something that i didn't understand :
    -i am selling the eur/usd at 1.0930
    -the contract is mini-lot
    -After several hours, the price rose to 1.0976 and then i close it
    the methode:(0.0001/1.0976)*10000 equals 0.91*46pips=41 dolars
    -now,what i didn't undeerstand is how the chosen volume in the opening of the trade affect this formula (0.0001/1.0976)*10000 in the cacul of the pip value
    for exemple can someone tell me if i choose 0.3 as volume how this formula become
     
  2. Enivid

    Enivid Administrator Staff Member

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    Sorry, but your formula is incorrect. The pip value in USD for a EUR/USD trade does not depend on the EUR/USD rate. It is $10 per standard lot, or $1 per mini-lot.

    As for the role of the position size, you just figure out the unit cost ($0.0001 in case of anything XXX/USD) and multiply it by your unit volume (10,000 in case of a mini-lot).
     
  3. Derbel Idriss

    Derbel Idriss Newbie

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    sorry but i didn't understand the part of of the position size can you give an exemple
    thx
    for exemple i have a mini-lot that mean $1 per pip if my position size is 0.3
    what will the pip value?
     
  4. Enivid

    Enivid Administrator Staff Member

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    If your position size is 0.3 mini-lot and you trade EUR/USD, then the pip value is:
    0.3 × 10,000 × $0.0001 = $0.30.
     
  5. Ary Barroso

    Ary Barroso Trader

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    Yes, that’s the correct calculation of pip value; I see; a number of new traders are confused about this sum!
     

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