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Forex Trade Results April 29, 2022 – $4,540

Today’s-Forex-Smart-Trade’s-Trade-Results
Forex Trade Results April 28, 2022 – $2,870.
April 28, 2022
Today’s-Forex-Smart-Trade’s-Trade-Results
Forex Trade Results May 2, 2022 – $3,890
May 2, 2022

Forex Trade Results April 29, 2022 – $4,540

Today’s-Forex-Smart-Trade’s-Trade-Results

How to Calculate the Value of a Pip.

As each currency has its own relative value, it’s necessary to calculate the value of a pip for that particular currency pair.

In the following example, we will use a quote with 4 decimal places.

For the purpose of better explaining the calculations, exchange rates will be expressed as a ratio (i.e., EUR/USD at 1.2500 will be written as “1 EUR / 1.2500 USD”)

Example #1: USD/CAD = 1.0200

To be read as 1 USD to 1.0200 CAD (or 1 USD/1.0200 CAD)

(The value change in counter currency) times the exchange rate ratio = pip value (in terms of the base currency)

[.0001 CAD] x [1 USD/1.0200 CAD]

Or simply as:

[(.0001 CAD) / (1.0200 CAD)] x 1 USD = 0.00009804 USD per unit traded

Using this example, if we traded 10,000 units of USD/CAD, then a one pip change to the exchange rate would be approximately a 0.98 USD change in the position value (10,000 units x 0.00009804 USD/unit).

We say “approximately” because as the exchange rate changes, so does the value of each pip move.

Example #2: GBP/JPY = 123.00

Here’s another example using a currency pair with the Japanese Yen as the counter currency.

Notice that this currency pair only goes to two decimal places to measure a 1 pip change in value (most of the other currencies have four decimal places). In this case, a one pip move would be .01 JPY.

(The value change in counter currency) times the exchange rate ratio = pip value (in terms of the base currency)

[.01 JPY] x [1 GBP/123.00 JPY]

Or simply as:

[(.01 JPY) / (123.00 JPY)] x 1 GBP = 0.0000813 GBP

So, when trading 10,000 units of GBP/JPY, each pip change in value is worth approximately 0.813 GBP.

Today’s-Forex-Smart-Trade’s-Trade-Results

Learn to Day Trade Forex 

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