How much money will 1 pip give you?
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Thread: How much money will 1 pip give you?

  1. #1
    Can anybody tell me the way to compute how much cash 1 pip will provide you? I know it depends upon every currency, but could you show me a few examples with the majors?

    thanks

  2. #2
    Not being familiar with All the Pip Calculator I would say this...

    It Is Dependent upon the Contract Size You're Trading.

    Require a 10.00 / Pip for instance.

    EUR/USD
    Total Contract Size = 100,000 USD
    EUR/USD trades into the 4th Decimal Place 1.3240

    The Math...
    If I have $100,000.00 1 Total Contract worth of Euros and I purchased them at $1.0000 each, If the Euro proceeds to a value of $2.0000 USD then I have doubled the value of my advantage. It currently has a value of $200,000.00 on the open market.

    Let us be realistic.
    I am not searching for a 10,000 pip move 1.0000 into 2.0000 = 10,000 pips on the EUR/USD, I am only searching for, ideally, 100 pips. How much is ONE PIP WORTH?

    The Truth...
    I hold a contract saying I control a Long Position of 100,000.00 USD worth of Euros.
    If the EUR/USD proceeds from 1.3240 USD into 1.3241 USD, I have gained $0.0001 / Euro. However, I control 100,000 of them...
    100,000 x 0.0001 = 10 or $10.00 /Pip.

    Thus, to reiterate, it depends on the contract size and to what decimal put the vehicle transactions. Complied I know, but important to understand.

    hth.

  3. #3
    Thus bemac exactly what your sayin is that it doesnt really matter which currecny pair im trading. It's to do with how big my contract and how many decimal places each currency has.

    You stated to figure out the pip value for EURUSd is:
    100,000 x 0.0001 = 10 or $10.00 /Pip.

    So that means that the pip value for USDJPY (being two decimal places) is:

    100,000 x 0.01= 1000 (or $1000.00 / pip)

    That doesnt make sense to me

  4. #4
    I'll elaborate in my way.

    1. Proceed to http://www.google.com
    2. Kind in pip calculator
    3. Click on any of the first three hyperlinks (best one is the next )
    4. Boom.

    You can pretty much type any word or phrase into google and it'll provide you what you're looking for.

  5. #5
    oSayi5
    Guest
    Quote Originally Posted by ;
    So that the pip value for USDJPY (being 2 decimal places) is:

    100,000 x 0.01= 1000 (or $1000.00 / pip)

    That doesnt make sense to me
    No...$100,000 x 0.01 = 1000 JPY / pip

    USD/CAD...$100,000 x 0.0001 = 10 cad / pip
    USD/CHF...$100,000 x 0.0001 = 10 chf / pip
    EUR/GBP....Eur 100,000 x 0.0001 = 10 gbp /pip

    etc etc

  6. #6
    esnesjttogubor
    Guest
    USD/JPY:

    119.80
    .01 divided by exchange rate = pip value
    .01 / / 119.80 = 0.0000834

    This looks like a very long number but later we'll talk lot size.

    USD/CHF:

    1.5250
    .0001 divided by exchange rate = pip value
    .0001 / 1.5250 = 0.0000655

    USD/CAD:

    1.4890
    .0001 divided by exchange rate = pip value
    .0001 / 1.4890 = 0.00006715


  7. #7
    esziTochu
    Guest
    Well there's a really simple way to see exactly what 1 pip is worth.
    Next time you have a position open take a look at the current profit/loss amount and the amount of pips transferred - split the P/L from the pips, and divide again by your lot size (in amounts of standard lots) and that is exactly what 1 pip is worth. It's best to try this when the price is not moving around much, although there are tricks to capture the action if you are techie enough.

    If you have a USD denominated account, and start a commerce in GBP vs EUR you will see that 1 pip is worth more than $10.

  8. #8
    uhubesSba
    Guest
    Quote Originally Posted by ;
    Oanda has a free puppy calculator under tools. It will supply you with the value based on contract size.
    Pup=Pip Curious

  9. #9
    uhubesSba
    Guest
    Oanda includes a free puppy calculator . It will supply you with the worth based on contract dimensions.

  10. #10
    Quote Originally Posted by ;
    Click on any of the first three links (best one is the third)
    Which one will be third (or occupy any other specified place ) will change based on both your place and your browser - this is just how Google operates.

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