How To Use This Pip Calculator

Traders have the option to trade a range of financial instruments, including major forex crosses, minors, exotics, popular cryptocurrencies like ADA, BTC, ETH, LTC and XRP, and commodities like Gold, Silver, and Oil. For the purpose of this example, let's take EUR/USD as the selected instrument.

 

The trade size varies for different instruments, with forex pairs being 100,000 units per 1 lot. However, units per 1 lot differ for non-forex pairs. Traders can also choose to calculate the pip value based on either the lots traded or the units traded. Let's say, for this example, we opt for a trade size of 10,000 currency units, or 0.10 mini-lot.

 

The deposit currency affects the pip value for each financial instrument. Pip values are dependent on the current market/exchange quotes and selecting an account currency will ensure accurate calculation of pip value in the trader's base currency, which could range from AUD to ZAR. In this example, we choose EUR as our deposit currency.

 

Upon clicking the "Calculate" button, the pip calculator will use a live market price feed and the current interbank rate (in 5-digit format) to display the current pip value in the selected account base currency, which in this case is EUR. For example, with a market rate of 1.21580 and a 0.10 lot of EUR/USD, the pip value for a EUR trading account would be €0.8225.

 

It's worth noting that pip values can vary for trading accounts with different base currencies like GBP or AUD, depending on the current market rate for GBP/USD or AUD/USD. To calculate the pip value in other currencies, the following formula is used:

 

Pip Value = (One Pip / Exchange Rate) * Lot Size

 

So, for the given example, the calculation would be:

 

Pip Value = (0.0001 / 1.21580) * 10,000 = €0.8225.