The Currency Market
Know all the details you need to know about Currency Market
Table: Currencies Indicative Pip Value
Currencies Indicative Pip Value | |||||
Instrument | Contract Size | Margin (1:100) | Pip | Pip Value | Spot |
EURUSD | EUR 100,000 | EUR 1,000 | 0.0001 | $10 | 1.4405 |
GBPUSD | GBP 100,000 | GBP 1,000 | 0.0001 | $10 | 1.5980 |
USDJPY | USD 100,000 | USD 1,000 | 0.01 | $10.92 | 91.50 |
USDCHF | USD 100,000 | USD 1,000 | 0.0001 | $9.67 | 1.0335 |
USDCAD | USD 100,000 | USD 1,000 | 0.0001 | $9.56 | 1.0460 |
AUDUSD | AUD 100,000 | AUD 1,000 | 0.0001 | $10 | 0.8880 |
NZDUSD | NZD 100,000 | NZD 1,000 | 0.0001 | $10 | 0.7095 |
EURAUD | EUR 100,000 | EUR 1,000 | 0.0001 | $8.90 | 1.6215 |
EURCAD | EUR 100,000 | EUR 1,000 | 0.0001 | $9.56 | 1.5065 |
EURCHF | EUR 100,000 | EUR 1,000 | 0.0001 | $9.67 | 1.4885 |
EURGBP | EUR 100,000 | EUR 1,000 | 0.0001 | $15.85 | 0.9011 |
EURGPY | EUR 100,000 | EUR 1,000 | 0.01 | $10.93 | 131.80 |
GBPAUD | GBP 100,000 | GBP 1,000 | 0.0001 | $8.90 | 1.7990 |
GBPCAD | GBP 100,000 | GBP 1,000 | 0.0001 | $9.56 | 1.6715 |
GBPCFH | GBP 100,000 | GBP 1,000 | 0.0001 | $9.67 | 1.6510 |
GBPGPY | GBP 100,000 | GBP 1,000 | 0.01 | $10.93 | 146.20 |
AUDCAD | AUD 100,000 | AUD 1,000 | 0.0001 | $9.56 | 0.9280 |
CHFJPY | CHF 100,000 | CHF 1,000 | 0.01 | $10.92 | 88.55 |
AUDCHF | AUD 100,000 | AUD 1,000 | 0.0001 | $9.67 | 0.9170 |
Examples: Currencies Pip Value Calculation
Counter Currency USDThe pip value where the USD is the counter currency can easily be calculated when quoted against currencies with four decimals.
With a margin of EUR 1,000 leverage 1:100 and size 1 lot the pip value is equal to $10
Example 1: Contracts 1 Lot
Margin: EUR 1,000 Leverage: 1:100 Position: EUR 100,000Exchange rate EURUSD=1.4405. Size of 1 lot is EUR 100,000 or USD 144,050
Exchange rate EURUSD=1.4406. Size of 1 lot is EUR 100,000 or USD 144,060 value $10
Example 2: Contracts 1 Lot
Margin: EUR 1,000 Leverage: 1:50 Position: EUR 50,000Exchange rate EURUSD=1.4405. Size of 1 lot is EUR 100,000 or USD 72,025
Exchange rate EURUSD=1.4406. Size of 1 lot is EUR 100,000 or USD 72,030 value $5
Example 3: Contracts 10 Lot
Margin: EUR 10,000 Leverage: 1:50 Position: EUR 500,000Exchange rate EURUSD=1.4405. Size of 1 lot is EUR 100,000 or USD 720,250
Exchange rate EURUSD=1.4406. Size of 1 lot is EUR 100,000 or USD 720,300 value $50
Basis Currency USD
The pip value is calculated as follows:( $100,000 * Lots * 0.0001 ) / Counter Currency = pip value in $
Example 1: Contracts 1 Lot
Margin: USD 1,000 Leverage: 1:100 Position: CAD 104,600Exchange rate USDCAD=1.0460. Size of 1 lot is USD 100,000 or USD 104,600
Exchange rate USDCAD=1.0461. Size of 1 lot is USD 100,000 or USD 104,610
( $100,000 * 1 * 0.0001 ) / 1.04600 = $9.56
Example 2: Contracts 1 Lot
Margin: USD 1,000 Leverage: 1:50 Position: JPY 4,575,000Exchange rate USDCAD=91.50. Size of 1 lot is USD 50,000 or JPY 4,575,000
Exchange rate USDCAD=91.51. Size of 1 lot is USD 50,000 or JPY 4,575,500
( $50,000 * 1 * 0.01 ) / 91.50= $5.4655
Cross Currency (USD not a base or counter currency)
The pip value is calculated as follows:(Base currency 100,000 lots * 0.0001)/counter currency = pip value in $
0.01 becomes 0.01 when the counter currency is JPY
When the counter currency is also the counter currency versus USD then we divide with the counter currency price versus USD(Example 2)
Example 1: Contracts 1 Lot
Margin: EUR 1.000 Leverage: 1:100 Position: CHF 148.850Exchange rate EURCHF= 1.4885 of 1 lots is EUR 100.000 or CHF 148.850
Exchange rate EURCHF= 1.4886 of 1 lots is EUR 100.000 or CHF 148.860
(EUR 100,000 * 1 * 0.0001)/1.0335 =$9.6786
Example 2: contracts 1 Lot
Margin: GBP 1,000 Leverage: 1:100 Position JPY 14,620.000Exchange rate GBP JPY = 146.20 size of 1 lot is GBP 100,000 or JPY 14,620,000
Exchange rate GBP JPY = 146.21 size of 1 lot is GBP 100,000 or JPY 14,621,000
(EUR 100,000 * 1 * 0.01)/91.50 =$10.9290
Cross currency (USD not a base or counter currency)
The pip value is calculated as follows:(base currency 100,000*Lots * 0.0001) * counter Currency = pip value in $
When the counter currency is the base currency versus then we multiply with the base currency price versus USD
Example 1:Contracts 1 Lot
Margin: EUR 1.000 Leverage: 1:100 Position: GBP 90.110Exchange rate EURGBP = 0.9011 Size of 1 lot is EUR 100.000 or GBP 90.110
Exchange rate EURGBP = 0.9012 Size of 1 lot is EUR 100.000 or GBP 90.120
(EUR 100,000 * 1 * 0.0001) * 1.5980 = $ 15.98