CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
76.09% of retail investor accounts lose money when trading CFDs with this provider.

How to understand pip and point values

For help with understanding pip and point value, please refer to the below example.

If an investor has Australian dollars and wants to purchase 10,000 in United States dollars at a quote of 0.7090. The calculation for this would be:

  • (1/currency quote) x purchase amount
  • 1/0.7090 x $10,000
  • 1.4104 x $10,000 = $14,104

The investor would have to pay $14,140 AUD to receive $10,000 USD.

But if the AUD/USD currency pair was 5 pips lower at 0.7085, the number would be different:

  • (1/currency quote) x purchase amount
  • 1/0.7085 x $10,000
  • 1.4114 x $10,000 = $14,114

At this quote, the investor would have to pay $14,114 AUD to receive $10,000 USD. In this case, the movement of 5 pips, the smallest unit of measurement, changes the value by $10.