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Trader Calculator:
On this page you can find formulae for calculating the value of one pip. The
value of a pip is calculated on the basis of the current rate of a given
currency pair.
Note that 1 InstaForex lot is 10000 USD.
Please find below a formula to calculate the value of one pip
for currency pairs and CFDs :
Calculation of 1 pip value:
1. XXX/USD
p.v. =1 * (trade volume)
2. USD/XXX
p.v. = 1/(USD/XXX) * (trade volume)
For USD/JPY p.v. = 100/(USD/JPY) * (trade volume)
3. AAA/BBB
p.v. =(AAA/USD)/ (AAA/BBB) * (trade volume)
Calculation of 1 pip value for a CFD:
p.v. = volume * leverage * minimum price change
Why does InstaForex Company use 10000 lot instead of standard 100000
one?
InstaForex Company provides an opportunity to trade on three
kinds of accounts at the same time: Micro Forex, Mini Forex and Standard Forex.
In order to make such a technology possible, a non-standard 10000 lot was
established which ensures 0.01 USD pip value if the trade volume is 0.01 lot,
i.e. the absolute minimum allowing the holders of 5000 - 10000 USD accounts to
effectively control their risks. Moreover, the 10000 lot size makes calculations
of a pip value convenient at opening positions.
Let us have a look at the data below:
0.01 InstaForex lot trade = 0.01 USD pip cost
0.1 InstaForex lot trade = 0.1 USD pip cost
1 InstaForex lot trade = 1 USD pip cost
10 InstaForex lot trade = 10 USD pip cost
100 InstaForex lot trade = 100 USD pip cost
1000 InstaForex lot trade = 1000 USD pip cost
Simple calculations and the opportunity to combine three formats of forex
trading in one account makes InstaForex lots an undeniable advantage of the
Company's trading conditions. |
