How is the pip value of the crosses calculated?

The pip value of the crosses changes along with the price. This is inconvenient to me to make the risk management, i.e.: lot size decision.

Is there a way to use excel to calculate the pip value at any given time?
Or a link to check it out?

This link seems not good enough. http://www.mataf.net/en/analysis-pipvalue.htm

Appreciate your help.

I put this together for MT4. It tells you in the top left the tick value and the spread. The value is based on a full size lot. Just move the decimal point for mini/micro accounts.

S,

This is quite simple to do:

obviously, you know how to calculate crosses where the USD is the denominator. $10 a pip per 100K where 100K is the lot size.

calculating a cross where the USD is the numerator is pretty easy too:
pip value = (pip * lot size) / rate. Note that a pip is usually going to be 0.0001 or 0.01 if you're trading a JPY cross.

calculating a cross where the USD is not in the numerator or the denominator is a bit trickier, but still pretty simple to do.

If the denominator currency has a USD cross rate where the USD is the DENOMINATOR (like the EUR/GBP where the USD cross rate is the GBP/USD), then the formula is:
pip value = pip * lot size * denominator cross rate (where the pip is as explained before and the cross rate is the USD cross rate [like the GBP/USD])

So, if you have the EUR/GBP @ 0.68 and the GBP/USD @ 1.9700 then your pip value = 0.0001 * 100K * 1.9700 = $19.70

If the denominator currency has a USD cross rate where the USD is the NUMERATOR (like the GBP/JPY where the USD cross rate is the GBP/USD), then your pip value is merely = to the pip value of the USD cross rate. So, in this particular case, the GBP/JPY pip rate = the USD/JPY pip rate (which I showed you how to calculate earlier).

Pretty simple stuff...I hope this helps.

Willf, mrmikal,

Excellent answers!
Really apprecaite it.

Have a nice weekend!

A hearty thank-you to you, sir! This is one of those little utilities that doesn't do any special magic, but it's tremendously valuable for its sheer usefulness. I know, mathematically, how to calculate the pip values but it's always a pain to do it. So, for lack of a better tool, I usually calculate pip value as $1/pip (on mini lots), knowing that these values are skewed somewhat on non-USD-based pairs (and sometimes skewed massively on exotic pairs like EURGBP).

I have downloaded your incredibly helpful indicator and I'm now adding it to all my templates.

Hi, Willf,

Can you add the swap value (in pips or $) to your indicator?

That would be more convenient for me to get the info at a glance

Thanks.

Try this

Hi,

Anyone can guide me with the codes to add to this so that:

1. it show the name of the currency the tick value is displaying for.
2. it can be shifted to other corners of the chart and also adjusting the distance from the sides.

Thanks in advance.

Hi all,

I wrote to Willf and he has helped me with adding the pair.

But he's busy with his schedules so he can't help out with the codes on positioning of the indy.

I have attached the new one with swap+pair name. can someone kindly guide me on the codes to enable the positioning of the indy.

Thanks in advance.

This is a really old thread but seems to be the only place on the net where it is explained, sort of, how to calculate the position size for AUDJPY. Still I cannot figure out how to organize the formula in Excel. There are dozens of online calculators available but I like using my own stuff written in Excel.

So, as an example, the balance is 10,000 USD. Leverage 1:500, although it is not needed for position size, I believe. Risk 1%. Stop loss 50 pips. AUDJPY rate (not sure it is needed) is 95.10. AUDUSD (not sure it is needed) is 0.745.

Should be pretty simple but somehow it is still skipping my mind. I think I provided all the numbers, if anything else is needed please just make it up, all I am trying to do is to understand the principle.

Again, I know there are tons of indicators, scripts etc as well as online resources to find it out available but I am trying to come up with Excel formula to solve this problem and there is seems to be nothing to specifically show the case for AUDJPY or EURJPY etc.

Can anyone help please?

If you want to make something in excel, you might want to use this code in your calculations. You can make it automatically update by going into mt4 / Tools / Options / Server and click Enable DDE. Then install the code to a column in excel and close it. If you broker uses prefixes or suffixes, add them to the name. Then open mt4, then open excel, and just below your tool buttons and just above the function line you will see a security warning. Click Options and enable. Now you will always have the latest price to help with all your calculations.

='MT4'|BID!AUDJPY

it is not what i was asking for but thank you anyways.

No problem. I thought I read you knew how to use excel, so you need this number. Okay then.

To determine price per lot, I use:
=ROUNDDOWN(((C324*D324*1000)+4),2)

C is the formula I gave you.
D is the percent margin required to open a position
+4 is my catastrophic stop loss = 40 pips
,2 is my decimals

Then to find the lot size, I use:
=ROUNDDOWN(((B324/((C324*D324*1000)+4))/100),2)

B is your account.

This is configured in micro lots, so just alter the 1000 or 100 if you need too. The number 324 just represents Dec 8.

For example
Column A is date 12/8/2016
Column B is account size $50,000
Column C is ='MT4'|BID!EURUSD
Column D is margin percent of 2
Column E is =ROUNDDOWN(((B324/((C310*D324*1000)+4))/100),2)
this is number of lots you can trade
Column F is =ROUNDDOWN(((C324*D324*1000)+4),2)
this is cost of each micro lot with stop loss included

AAAAAAAA BBBBBB CCCC D EEEEE FFFF
12/8/2016 $50,000 1.061 2 19.83 25.21

You can name the columns A-F whatever you want. Ignore how I had to write these things. For some reason the editor won't let me make columns.

I do not have a margin call, so if you do, then you will need to divide the percentage from your account in your calculation, so you are only counting the money available for trading.

To narrow down AUDJPY you first right click on it from Market Watch, then click Specification and see what your margin percentage is. Divide that number by 50, if it is like mine. That is your number for column D.

Since you only want to trade 1% of your account, LOL, then first figure out if you have a margin call. Let's pretend you have one at 40%. So whatever your account balance is, you multiply it by 0.6 so you know your maximum risk. Then multiply that by 0.01 to get how much money you will use per trade. Then determine how large your stop will be and subtract it from that number. If you have any money remaining, that is how much you have to trade. Use that number as "B" in the above formulas. If they can calculate any lots at all, that is your risk size.

Example:
$10,000 with margin call at 40% means you have $6000 available for trading.
1% of that is $60 available to risk on a trade.
$60 is definitely a micro lot, and so if you have a stop of 50 pips, that is $5. Your money to risk is now $55.
With $55, I am not sure what your margin is at 1:500. I can only speak from what I know. For me, my leverage is 1:50 so I have a 4% margin.
You need to change 1000 to 10 since it is a JPY pair.
This means that for me, at 50 pips stop, 4% margin, each micro lot costs $39.13. With only $55 available for trading, I can only 1 micro lot.
So, you have $10,000 sitting in your account, with $6000 available for trading, but are only going to use $39.13 and make about 10 cents a pip.
Does that make serious sense to you?
Of course, you will need to adapt the math to your leverage, account size, margin percentage, margin call, and stop loss. Hope this gives you a starting point.

thank you. It is more complex that i wanted but a good answer. yes, i will be able to work out my own math based on it.

it took me two espressos to get what you were saying, lol, that's why i never use other people Excel. everybody's logic is different and Excel becomes a labyrinth emphasizing it.

thank you for your time again.