CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.76% 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.
70% of retail investor accounts lose money when trading CFDs with this provider.
81.76% of retail investor accounts lose money when trading CFDs with this provider.

How to calculate Pip Value for each asset type we offer exposure to

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Author: Joseph Jeffriess
In this article, we will try to explain how to calculate the Pip or Point value, depending on the Instrument in our focus, with the related formula and given example. Namely, calculating Pip/Point Value for Forex pair, Oil, Metals, Indecies, Crypto and Stock CFDs.

Forex Pip Value calculation:

To calculate the pip value for a Forex Pair, divide one pip (the fifth number after the decimal point: 0.0001) by the current market value of the Forex pair. Then, multiply that figure by your lot size in units/contracts size (1 lot is 100 000 units; 0.1 lot is 10 000 units; 0.01 is 1000 units)

Formula:

If EURUSD’s market price is 0.99575 you divide it by 1 pip and then multiply it by the lot size in units.

1 lot is 100 000 units: (0.00001 / 0.99575) * 100 000 = 1.04 USD (In the currency that is secondary in the quote.)

Indecies Point Value calculation:

The value of 1 point for indices is 1 cent since the indices are denominated until the 2nd digit after the decimal point.

As the contract size of Indices is 10, then 1 standard lot is 10 index levels, 10 times the current price. For example, if you open a position of 1 lot for US30, and the price changes 1 point, the profit or loss changes by 10 cents, as you are holding a position of 10 index levels.

1 lot of US30 with a price of 30125.80, and if the price moves to 30125.81 the profit would be 0.10 USD.

For 0.1 lots of US30 with a price of 30125.80, and if the price moves to 30125.81 the profit would be 0.01 USD.

Crypto Point Value calculation:

The point value of a crypto instrument is the same as with the indices – 1 cent since the Cryptos are denominated until the 2nd digit after the decimal point.

As the contract size of BTCUSD is 1, then 1 standard lot is 1 Bitcoin.

For example: if you open a position for 1 lot BTCUSD and the price of BTC from 20280.00 goes up to 20280.01 the profit/loss would be 0.01 USD.

Stocks CFDs, Metals, and Oil Point value:

The stock, Metals, and Oil prices are dictated by the contract size. The contract size for those is generally 100 units/ contracts which means 1 lot is 100 shares, 100 Troy ounces, and 100 Barrels you are buying/selling.

The value of your position changes depending on the volume you have bought for 1 lot – 100 shares, troy ounces, or barrels the price of the asset goes up by 1 dollar, the position will be in profit or loss of 100 dollars.

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