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Pip value

  • #1
  • First Post: Jan 8, 2010 8:38pm Jan 8, 2010 8:38pm
I'm having trouble understanding how to calculate pip value, among a few other things.

For example, say you have $50K in a standard account and trade 1 lot, EUR/USD--how much margin would be used from trading 1 lot? $1,000? I'm having the most trouble understanding how much margin is used when you trade a certain amount of lots. Also, for this particular pair, would 1 pip equal $10?
  • #2
  • Jan 8, 2010 8:53pm Jan 8, 2010 8:53pm
Quoting pay tribute
I'm having trouble understanding how to calculate pip value, among a few other things.

For example, say you have $50K in a standard account and trade 1 lot, EUR/USD--how much margin would be used from trading 1 lot? $1,000? I'm having the most trouble understanding how much margin is used when you trade a certain amount of lots. Also, for this particular pair, would 1 pip equal $10?
If the leverage is 100:1.

1 Lot = $100,000

Margin = $100,000 x 1% = $1,000

Pip value = $100,000 x 1 pip ($0.0001) = $10

So all that you've said was correct.
  • #3
  • Jan 8, 2010 9:01pm Jan 8, 2010 9:01pm
Quoting X Trader
If the leverage is 100:1.

1 Lot = $100,000

Margin = $100,000 x 1% = $1,000

Pip value = $100,000 x 1 pip ($0.0001) = $10

So all that you've said was correct.
You the man. Thanks
  • #4
  • Jan 9, 2010 3:13am Jan 9, 2010 3:13am
Quoting X Trader
If the leverage is 100:1.

1 Lot = $100,000

Margin = $100,000 x 1% = $1,000

Pip value = $100,000 x 1 pip ($0.0001) = $10

So all that you've said was correct.
For EUR/USD margin won't be $100,000 x 1% = $1,000, it'll be €100,000 x 1% = ~$1,440.

The pip value depends only on the basic currency of the pair and is always $10 for standard lots in XXX/USD pairs.
  • #5
  • Last Post: Jan 9, 2010 12:41pm Jan 9, 2010 12:41pm
you can log into oanda.fxtrade to calculate the pip value and how much will your SL and TP be.
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