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
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:
p.v. =1 * (trade volume)
p.v. = 1/(USD/XXX) * (trade volume)
For USD/JPY p.v. = 100/(USD/JPY) * (trade volume)
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
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.