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Pip value calculation?

  • #1
  • First Post: Apr 6, 2009 1:11am Apr 6, 2009 1:11am
Can someone answer a question for me......its been my understanding that:

The pip value is as follows;
1 lotsize = $100K = $10 per pip
0.1 lotsize = $10K = $1 per pip (lowest on my mini)
0.01 lotsize = $1K = $0.10 per pip (lowest on my micro)

Is it possible for a different broker to have differant values?

I ask because in testing a EA on a micro account, the recommended size is 0.01 which is the lowest on my micro account. There is currently a DD of 11,000 pips or $1100. The creator of the EA claims the DD should be only $110 despite our settings being identical. He uses IBFX and I use FXDD.

I dont get it

Luckily I could bail on this DD and still make $400 because he said its possible to have 250,000 pip DD which would kill my account but only be $2500 on his. It never occured to me that we could have different pip values from different brokers.

Anyone?
  • #2
  • Apr 6, 2009 1:55am Apr 6, 2009 1:55am
Quoting demons19
Can someone answer a question for me......its been my understanding that:

The pip value is as follows;
1 lotsize = $100K = $10 per pip
0.1 lotsize = $10K = $1 per pip (lowest on my mini)
0.01 lotsize = $1K = $0.10 per pip (lowest on my micro)

Is it possible for a different broker to have differant values?
1 lot = $10 per pip if you are using USD and trading xxxUSD. so for EURUSD, GBPUSD, AUDUSD, NZDUSD this would be true. But USDCHF would be $8.84 at the moment.

Pip value varies significantly between $6 to $15 for the major currencies. It depends on the value of the currency at the time.

If your deposit currency is not USD, then none of my calculations are correct. Do some research and you'll find out how to calculate.

e.g
xxxGBP will be $14.84 at the moment*.
xxxAUD will be $7.15 at the moment*.
xxxCHF will be $8.84 at the moment*.
xxxJPY will be $9.97 at the moment*.
xxxCAD will be $8.13 at the moment*.

*It varies according to the value of the currency and the above are all for 1 lot traded.
  • #3
  • Apr 6, 2009 2:06am Apr 6, 2009 2:06am
I think you missed my general question.......I am not talking about the currency value but the different pip value at different brokers for that same currency.

On my FXDD/FXCM accounts
On my mini account---0.10 = $1 per pip for eurusd
On my micro account--0.01 = $0.10 per pip for eurusd

On this other persons account at IBFX
0.10 = $0.10 per pip for eurusd
0.01 = $0.01 per pip for eurusd

His broker is using a value 10x less than my brokers......is that normal?

I thought any micro account, which trades a 0.01 lot as its lowest amount would be worth the same dollar value at every broker.....same for mini accounts.
  • #4
  • Apr 6, 2009 2:10am Apr 6, 2009 2:10am
Quoting demons19
I think you missed my general question.......I am not talking about the currency value but the different pip value at different brokers for that same currency.

On my FXDD/FXCM accounts
On my mini account---0.10 = $1 per pip for eurusd
On my micro account--0.01 = $0.10 per pip for eurusd

On this other persons account at IBFX
0.10 = $0.10 per pip for eurusd
0.01 = $0.01 per pip for eurusd

His broker is using a value 10x less than my brokers......is that normal?

I thought any micro account, which trades a 0.01 lot as its lowest amount would...
This deals with account types.
e.g IBFX have a standard account where 1 lot is $10 for xxxUSD,
but they also have a mini account where 1 lot trades $1 for xxxUSD.

This means that on the mini account if you trade 0.01 lot each pip is worth 1 cent.
  • #5
  • Apr 13, 2009 7:54am Apr 13, 2009 7:54am
A pip is defined as the smallest tradable increment. When brokers began offering fractional pips (5th decimal or 3rd decimal for JPY pairs) the value of a pip changed but not all brokers respected the definition. Some brokers call a pip 0.0001 and some call it 0.00001. The bottom line is that you need to know how your broker defines a pip.
  • #6
  • May 5, 2009 12:16am May 5, 2009 12:16am
Hi,

Quote
1 lot = $10 per pip if you are using USD and trading xxxUSD. so for EURUSD, GBPUSD, AUDUSD, NZDUSD this would be true.

a. If I trade 100,000 EURUSD (1 std lot), then per pip is $10.00 gain and
b. If I trade 100,000 NZDUSD (1 std lot), then per pip is $10.00 too.

However:
a. For 100,000 unit EURUSD, my USD equivalent is = 100,000x1.3350 (EURUSD rate on 5May09) or USD133,500 is needed.

b. For 100,000 unit NZDUSD, my USD equivalent is = 100,000x0.5760 (NZDUSD rate on 5May09) or USD57,600 is needed only.

In this way, if I trade 1 std lot of NZDUSD, I only need to fund USD57,600 from my account (assuming no leverage) but EURUSD would require USD133,500 - for the same gain per pip of $10.00. Is that correct?

Regards,
Toyogo
  • #7
  • May 5, 2009 6:00am May 5, 2009 6:00am
Quoting toyogo00
Hi,



a. If I trade 100,000 EURUSD (1 std lot), then per pip is $10.00 gain and
b. If I trade 100,000 NZDUSD (1 std lot), then per pip is $10.00 too.

However:
a. For 100,000 unit EURUSD, my USD equivalent is = 100,000x1.3350 (EURUSD rate on 5May09) or USD133,500 is needed.

b. For 100,000 unit NZDUSD, my USD equivalent is = 100,000x0.5760 (NZDUSD rate on 5May09) or USD57,600 is needed only.

In this way, if I trade 1 std lot of NZDUSD, I only need to fund USD57,600 from my account (assuming no leverage) but EURUSD would require USD133,500...
The first currency is the "base" and the second currency is the "quote" or "counter." When you trade a standard lot you are buying (or selling) $100,000 of the base. To do so, you borrow as much of the counter currency as necessary to get your base to $100,000.

Both of your examples are correct. Anything ending in USD is $10/pip when you trade s standard contract.
  • #8
  • Jan 8, 2015 10:03am Jan 8, 2015 10:03am
How can I determine the pip value of a standard lot that does NOT include USD but the base balance is in USD?

For example, given the values below, how can the pip value of GBPCAD be calculated?

Pair: GBPCAD
Price: 1.78202

Pair: GBPUSD
Price: 1.50624

Pair: USDCAD
Price: 1.1829
  • #9
  • Jan 10, 2015 7:44pm Jan 10, 2015 7:44pm
this should work i think
Attached File(s)
File Type: mq4 money_management.mq4   3 KB | 1,077 downloads
FXerha
  • #10
  • Jan 14, 2015 10:30am Jan 14, 2015 10:30am
Quoting deklin
How can I determine the pip value of a standard lot that does NOT include USD but the base balance is in USD? For example, given the values below, how can the pip value of GBPCAD be calculated? Pair: GBPCAD Price: 1.78202 Pair: GBPUSD Price: 1.50624 Pair: USDCAD Price: 1.1829
1.10 GBP
2.10GBP
3.10 USD

Actually your broker should have similar page https://www.hotforex.com/en/trading-...ils-forex.html. Check last column. No need for calculations..
  • #11
  • Jan 16, 2015 1:46pm Jan 16, 2015 1:46pm
Just curious, have you asked your broker regarding this? Usually brokers provide info on this..
  • #12
  • Jan 18, 2015 4:26pm Jan 18, 2015 4:26pm
just google tick value calculation and drop on your chart than calc by lot size. I am sure others can do math better than me, but why bother!+-
Attached File(s)
File Type: mq4 Tick-Value.mq4   1 KB | 1,090 downloads
  • #13
  • Apr 12, 2017 9:55am Apr 12, 2017 9:55am
Is there any trading platform where you just notify your stop loss and your max loss (for example you are risking 2%) and that the platform calculates for you how many lots do you need to trade? I am asking for a platform that you can use with a demo account.
  • #14
  • Apr 15, 2017 4:01pm Apr 15, 2017 4:01pm
have you tried NT7? you can code this using C# if you know how to code. if not, there is a forum and/or support staff is helpful if unable to figure out yourself
  • #15
  • Last Post: Apr 16, 2017 4:34pm Apr 16, 2017 4:34pm
Quoting demons19
Can someone answer a question for me......its been my understanding that: The pip value is as follows; 1 lotsize = $100K = $10 per pip 0.1 lotsize = $10K = $1 per pip (lowest on my mini) 0.01 lotsize = $1K = $0.10 per pip (lowest on my micro) Is it possible for a different broker to have differant values? I ask because in testing a EA on a micro account, the recommended size is 0.01 which is the lowest on my micro account. There is currently a DD of 11,000 pips or $1100. The creator of the EA claims the DD should be only $110 despite our settings...
@demons19

Smallest trade that IBFX allows is $100 = $0.01 per pip.
http://orig.ibfx.com.au/Trade/Contract-Sizes

This explains the difference in calculations.

P. S. 11,000 pips DD. oh.
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