How do I calculate how much a USDCHF pip is worth?

If you could provide the formula, I would appreciate it.

Thanks!

Quoted from Google search:

How to Calculate Pip Values



A "pip" is the smallest increment in any currency pair. In EURUSD, a movement from .8941 to .8942 is one pip, so a pip is .0001. In USDJPY, a movement from 130.45 to 130.46 is one pip, so a pip is .01. How much in dollars is this movement worth, for example, per 10,000 Euros in EURUSD? How much is one pip worth per 10,000 Dollars in USDJPY? We will refer to the size, in this case 10,000 units of the base currency, as the "Notional Amount". The formula for calculating a pip value is therefore:

(one pip, with proper decimal placement/currency exchange rate) x (Notional Amount)

Using USDJPY as an example, this yields:

(.01/130.46) x USD10,000 = $0.77

or 77 cents per pip

Using EURUSD as an example, we have:

(.0001/.8942) x EUR10,000 = EUR 1.1183

But we want the pip value in USD, so we then must multiply EUR1.1183 x (EURUSD exchange rate):

EUR 1.1183 x .8942 = $1.00

This is in fact a phenomenon you will see with any currency in which the currency is quoted first (such as EURUSD, GBPUSP, or AUDUSD): the pip value is always $1.00 per 10,000 currency units. This is why pip (or "tick") values in currency futures, where the currency is quoted first, are always fixed.

Approximate pip values for the major currencies are as follows, per 10,000 units of the base currency:

USD/JPY: 1 pip = $.77; In other words a change from 130.45 to 130.46 is worth about $.77 per $10,000.

EUR/USD: 1 pip = $1.00; .8941 to .8942 is worth $1.00 per 10,000 Euros.

GBP/USD: 1 pip = $1.00; 1.4765 to 1.4766 is worth $1.00 per 10,000 Pounds. USD/CHF: 1 pip = $.59; 1.6855 to 1.6866 is worth $.59 per $10,000.

Use US$1 for Mini lots and US$10 for standard lots and divide by Liquidated/Settled Price.

eg: Standard lot: US$10/1.2508 = CHF7.99
Hope that helps

Thanks Ya'll!

Check this site..

http://www.mataf.net/en/analysis-pipvalue.htm

why is the tick value fixed ?

for ex. usd/chf

tick value =

(0.0001 / 0.9176) * 10 000 USD = 1.0898 $ .

so I get 1.0898 $ for 1 tick

say i got 5 ticks .. so in total i made 5 * 1.0898 $

what if the curreny exchange rate changes, would my tick value change aswell ? Is the tick value determined by the currency exchange rate which i enter trading ?

When the second currency of the pair is USD then 1 pip yields $1 for a mini-lot ($10k).
When the second currency is something else, like CHF, then it depends upon how your broker transacts the trade. Some brokers will simply trade whatever is worth $10k (mini-lot trades) in which case one pip is likely to yield $1. Other brokers will trade CHF10k in which case 1 pip will yield a different cash amount. At the moment you need around $10000/0.9180 to trade CHF10k, so a 1 pip change will yield nearly $1.09. When the rate changes the pip-yield will change.

HOWEVER; the easiest way to figure this is to look at your last CHF trade, see how much you made or lost and divide that by the number of pips moved during your trade.

i use this here cause i am bad with mental math http://www.smileygarden.de/smilie/Fragend/12.gif

http://www.goforex.net/pip-calculator.htm

The formula is:

pv = units / (USDCHF * 10000) dollar (<=> units / USDCHF / 10000)

i.e. for 100k units USDCHF one pip is 100000 / (USDCHF * 10000) dollar worth.

In general if the pair is XXXUSD then the formula is units * XXXUSD / 10000 (10000 if four digits, 100 if two digits, i.e. with JPY), and if the pair is USDXXX then the formula is units / USDXXX / 10000