Calculate The Value Of A PIP

Formula is: (close - open) * contract size * volume * convert rate


Here's an example:

EURUSD
close 1.15200
open 1.15000
contract_size 100 000
volume 1 lot
account in USD (or USD cents)

USD is quote currency here, so convert rate = 1

(1.15200 - 1.15000) * 100 000 * 1  = 0.00200 * 100 000 = 200 (USD/USD cent). So, profit is 200 * 1 = 200 (USD/or USD cent)

USDJPY
close 113.200
open 113.000
contract_size 100 000
volume 1 lot
account in USD (or USD cents)

JPY is quote currency, convert rate = 1/113 (for this example, depends on open price)

(113.200-113.000) * 100 000 * 1 = 0.2 * 100 000 = 20 000 (JPY/or JPY cent)

So, profit is 20 000 / 113 = 176.99 (USD/or USD cent)

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