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The Currency Market

Major Currencies and Crosses

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  0.01td> $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 USD

The 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 100,000 Exchange 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 50,000 Exchange 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 Lots

Margin: EUR 10,000 Leverage: 1:50 Position: EUR 500,000 Exchange 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 $ 0.001 becomes 0.01 when the counter currency is JPY (Example 2)

Example 1: Contracts 1 Lot

Margin: USD 1,000 Leverage: 1:100 Position: CAD 104,600 Exchange 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 4,575,000 Exchange 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 148.850 Exchange 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 14,620.000 Exchange 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 90.110 Exchange 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