Pip Calculator (Forex)
At this point, it is essential to understand two key terms related to Forex, such as:
1. Pip - is the smallest unit change in the exchange rate of a currency pair, e.g. if the EURUSD value is 1.3150 with a positive change of 1 pip, then the later value will be 1.3151. Each pip corresponds to the change of the fourth digit after the decimal point with the exception of the Japanese Yen in which the second digit after the decimal point is.
2. Lot is the unit size of the transaction. In each currency pair, the first currency is called the base currency and the second is called the counter currency (or quote currency). Moreover, there is the account currency in which we do transactions and our portfolio value is being calculated.
The 3 types of unit sizes are:
Standard Lot equals to 100.000
Mini Lot equals to 10.000
Micro Lot equals to 1.000
(all the types of the units are calculated on the base currency)
1. Pip - is the smallest unit change in the exchange rate of a currency pair, e.g. if the EURUSD value is 1.3150 with a positive change of 1 pip, then the later value will be 1.3151. Each pip corresponds to the change of the fourth digit after the decimal point with the exception of the Japanese Yen in which the second digit after the decimal point is.
2. Lot is the unit size of the transaction. In each currency pair, the first currency is called the base currency and the second is called the counter currency (or quote currency). Moreover, there is the account currency in which we do transactions and our portfolio value is being calculated.
The 3 types of unit sizes are:
Standard Lot equals to 100.000
Mini Lot equals to 10.000
Micro Lot equals to 1.000
(all the types of the units are calculated on the base currency)
Finally, do not forget to place in the pip calculator the correct currency of your account to avoid erroneous results.
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