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Pip Value Calculation for cross currencies

  • #1
  • First Post: Jun 19, 2011 6:50pm Jun 19, 2011 6:50pm
Hello Guys
I am having big time difficulty trying to find out the formula for pip value for cross currency. Can any one give me an indication of mt4 equivalent for that formula
Account currency: GBP
Cross intrested: USD/JPY, EUR/JPY and GBP/JPY

I am trying to create an indicator which will enable me to tell the position size based on say 500 gbp risk on a trade on the above crosses?

Would really appreciate


Thanks
  • #2
  • Jun 19, 2011 7:57pm Jun 19, 2011 7:57pm
I think this is what you are after.

double pips = MarketInfo("USDJPY", MODE_TICKSIZE);

Remember the answer is in pipettes for 5 digit broker, so that you need to multiple by 10.
  • #3
  • Jun 19, 2011 7:59pm Jun 19, 2011 7:59pm
Quoting adler
Hello Guys
I am having big time difficulty trying to find out the formula for pip value for cross currency. Can any one give me an indication of mt4 equivalent for that formula
Account currency: GBP
Cross intrested: USD/JPY, EUR/JPY and GBP/JPY

I am trying to create an indicator which will enable me to tell the position size based on say 500 gbp risk on a trade on the above crosses?

Would really appreciate


Thanks
Adler,

Use

double point_value = MarketInfo("[currency pair]",MODE_TICKVALUE);

This should give you the value, in whatever currency your account is denominated in (GBP in your case), of a 1 point move in the [currency pair].

If your br0ker uses 5/3 digit quotes, then multiply this value by 10 to convert from GBP/point to GBP/pip.

This may work differently depending on the br0ker. It definitely works 100% for GoMarkets.

David
  • #4
  • Jun 19, 2011 8:00pm Jun 19, 2011 8:00pm
Quoting CodeMeister
I think this is what you are after.

double pips = MarketInfo("USDJPY", MODE_TICKSIZE);

Remember the answer is in pipettes for 5 digit broker, so that you need to multiple by 10.
CM,

Looks like our posts crossed. Great minds think alike.

David
  • #5
  • Jun 19, 2011 8:03pm Jun 19, 2011 8:03pm
Quoting hanover
CM,

Looks like our posts crossed. Great minds think alike.

David
Except you still didn't answer OP's question. He wants cross prices, not pairs.
You are in a maze of twisty little passages, all alike.
  • #6
  • Jun 20, 2011 12:32am Jun 20, 2011 12:32am
Quoting stevegee58
Except you still didn't answer OP's question. He wants cross prices, not pairs.
Well, I did my best, given the way that I interpreted his question.

What exactly is his question, then, and what is the correct answer?
  • #7
  • Jun 20, 2011 2:53am Jun 20, 2011 2:53am
Quote
double pips = MarketInfo("USDJPY", MODE_TICKSIZE);

Remember the answer is in pipettes for 5 digit broker, so that you need to multiple by 10.

I used that formulae in my broker alpari uk and then found the value as 0.01

pipvalue = MarketInfo("USDJPY", MODE_TICKSIZE)*10;
Comment("Value = "+ pipvalue);

Sorry thats is not what I need, if i use this calculator i get a different answer. I want to get this answer as below for PV

http://www.earnforex.com/pip-value-calculator
Account Currency = GBP
Currency Pair = USD/JPY
Current price = 80.15
Position Units = 100000
PV: 12.478163214374845

What is the formulae to get PV: 12.47

I found a version of formulae here but it does not work correctly or I am not able to code properly, Any help is great thanks
http://www.forexnewbies.com/pip-value-formula/

Thanks guys again
  • #8
  • Edited 5:24am Jun 20, 2011 3:54am | Edited 5:24am
Quoting adler
I used that formulae in my broker alpari uk and then found the value as 0.01

pipvalue = MarketInfo("USDJPY", MODE_TICKSIZE)*10;
Comment("Value = "+ pipvalue);

Sorry thats is not what I need, if i use this calculator i get a different answer. I want to get this answer as below for PV

http://www.earnforex.com/pip-value-calculator
Account Currency = GBP
Currency Pair = USD/JPY
Current price = 80.15
Position Units = 100000
PV: 12.478163214374845

What is the formulae to get PV: 12.47

I found a version of...
Adler,

Use MODE_TICKVALUE not MODE_TICKSIZE
also, make sure your pipvalue is defined as double

Just tried it with GBP-denom acct Alpari UK and I get

"Value = 7.71253827"

Not sure why you want to get 12.47, as each pip USDJPY moves = £7.71 per full lot (100,000) traded

To prove this, I suggest that you try opening a 1 lot position in USDJPY, then closing it. Divide the difference (in pips) between the entry and exit prices in the terminal into the P/L value (which will be in GBP): you will find that it is approx £7.71 per pip, not £12.47

I'm not sure how this calculation works off the top of my head, I simply know that MODE_TICKVALUE (x 10) always gives the correct answer.

[EDIT] Just noticed that if you divide 12.47 by the GBPUSD rate (1.6164), you get ~7.71
Hence movement in 1 pip of USDJPY equals USD 12.47, which equals GBP 7.71

David
  • #9
  • Edited 5:25am Jun 20, 2011 5:07am | Edited 5:25am
Adler,

Let's go back to first principles.

You want to buy 1 lot USDJPY.
OK, that means you must spend JPY to obtain USD
Let's say that the current USDJPY price is 80.312

So you spend 80.312 x 100,000 yen = 8,031,200 yen (to buy 100,000 USD)

Now let's say the USDJPY price rises 1 pip, i.e. 0.01, to 80.322

So now you sell your 100,000 USD for 80.322 x 100,000 = 8,032,200 yen

You have made 1,000 yen, which divided by 80.322 = USD 12.45

Hence each pip USDJPY = USD 12.45 (per full lot traded)


But your account is denominated in GBP, so you need to convert the USD to GBP:

USD 12.45 divided by 1.6161 GBPUSD equals GBP 7.70 approx


Therefore, in summary, the formula for 1 lot USDJPY is:

1,000 / USDJPY rate / GBPUSD rate

David
  • #10
  • Jun 20, 2011 5:18am Jun 20, 2011 5:18am
Adler,

I tried the web link you provided, it gives the correct answer of 7.70

1. Account currency = GBP
2. Currency pair = USD/JPY
3. Position size, units = 100,000
4. Current GBP/JPY Ask price = 129.84

Results: price of pip = 7.701786814540974

I think you probably typed the USDJPY rate into step 4, instead of the GBPJPY exchange rate.

Anyway, if you simply use MarketInfo("[pair]",MODE_TICKVALUE)*10, it should always work correctly (provided the br0ker has set it up properly), no matter what currency the account is denominated in. It will save you the headache of having to work out the calculation for each different pair.

David
  • #11
  • Jun 20, 2011 5:27am Jun 20, 2011 5:27am
hello david
cant ask for more thanks thanks thats is perfecto
  • #12
  • Mar 12, 2016 2:06pm Mar 12, 2016 2:06pm
can anyone tell me what rate to use for the quote symbol rate, when calculating currency pairs?

I mean USD based rates you need to lookup to convert a cross-pair

here it just says the current rate, but I don't really know what a current rate is...

is it:

 

  1. bid
  2. ask
  3. avg of bid and ask
  4. or something else

?

This site describes calculation very well, but, like all the others I found, doesn't describe what exactly a current rate is...

http://forexwinners.ru/forex/calcula...alue-of-a-pip/

  • #13
  • Edited 2:25pm Mar 12, 2016 2:14pm | Edited 2:25pm
Quoting ycomp
can anyone tell me what rate to use for the quote symbol rate, when calculating currency pairs? I mean USD based rates you need to lookup to convert a cross-pair here it just says the current rate, but I don't really know what a current rate is... is it: bid ask avg of bid and ask or something else ? http://forexwinners.ru/forex/calcula...alue-of-a-pip/
value of 1 Pip for one 10k(0.1 lot) lot of EUR/USD where the base currency of the account is USD.
Start with 10,000. Multiply 10,000 by .0001 since 1/10,000th is a pip for all pairs (except JPY pairs). 10,000* .0001 = 1.
You now know each pip is worth 1 USD. That will be valued in the counter currency (second currency) of the pair.
In this example, we are using the EUR/USD, so USD is the counter currency of the pair. Here, 1 pip is worth 1 USD dollar for 1 - 10k lot of EUR/USD.

value of 1 Pip for 1 - 10K lot of EUR/GBP where the base currency of the account is USD.
Start with 10,000. Multiple 10,000 by .0001 since 1/10,000th is a pip for all pairs (except JPY pairs). 10,000* .0001 = 1.
You now know each pip is worth 1. That will be valued in the counter currency (second currency) of the pair. In this example, we are using the EUR/GBP, so GBP is the counter currency of the pair.
Take the current exchange rate of the GBP/USD and multiply it by 1 to calculate the value of 1 pip in your base currency.
In this example, GBP/USD is trading at $1.66 and 1 Pip for EUR/GBP would be equal to $1.66 USD.

rate will usually be quoted by broker, not spot

https://www.mql5.com/en/code/12418

save the hassle
  • #14
  • Dec 1, 2024 7:49pm Dec 1, 2024 7:49pm
I try to check it, but it still not work, not appear screen yet.
Pls help me!
  • #15
  • Dec 1, 2024 10:45pm Dec 1, 2024 10:45pm
Quoting hanhtran.qt
I try to check it, but it still not work, not appear screen yet. Pls help me!
Here U Go...
Attached File(s)
File Type: ex4 PipValueLite.ex4   11 KB | 163 downloads
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Meditation All Time Return: 8.9%
  • #16
  • Dec 4, 2024 9:44pm Dec 4, 2024 9:44pm
I have problem as following:

1. Account currency = AUD
2. Currency pair = XAU/USD
I check from my MT4 (FXCM)
MarketInfo(Symbol(),MODE_TICKSIZE) = 0.01
MarketInfo(Symbol(),MODE_TICKVALUE) = 0.01
MarketInfo(Symbol(),MODE_LOTSIZE) = 1

How i calculate it ? PipValue?
if I buy 0.5 lot, how Pipvalue this lot?

Could anybody help me to clean these?
  • #17
  • Dec 5, 2024 6:26am Dec 5, 2024 6:26am
Quoting hanhtran.qt
I have problem as following: 1. Account currency = AUD 2. Currency pair = XAU/USD I check from my MT4 (FXCM) MarketInfo(Symbol(),MODE_TICKSIZE) = 0.01 MarketInfo(Symbol(),MODE_TICKVALUE) = 0.01 MarketInfo(Symbol(),MODE_LOTSIZE) = 1 How i calculate it ? PipValue? if I buy 0.5 lot, how Pipvalue this lot? Could anybody help me to clean these?
Use this lot size calculator, find here:
https://www.forexfactory.com/thread/...82#post6446882
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  • #18
  • Dec 6, 2024 5:41pm Dec 6, 2024 5:41pm
It is not work with GOLD (XAU/USD), only Currency pair
So, my calculation price of pip too big ...
  • #19
  • Last Post: Dec 6, 2024 10:43pm Dec 6, 2024 10:43pm
Quoting hanhtran.qt
It is not work with GOLD (XAU/USD), only Currency pair So, my calculation price of pip too big ...
For Gold use this:
https://www.myfxbook.com/forex-calcu...culator/XAUUSD
0.01 lot, 1 pips = $10
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