Trader's Calculator
On this page you can find point cost estimate formulas. You may use our calculator as well, in order to define exact values.
Cost estimate 1 pips
| Quotation Type |
Currency Pair Example |
Cost for 1 pips |
| XXX/USD |
EUR/USD
GBP/USD |
A*B*n,
where A - the minimal change in price
(for example 0,0001 for EUR/USD) for a given currency pair,
B - the contract size,
n - volume (number of lots). |
| USD/XXX |
USD/JPY
USD/CHF |
(A*B*n)/d,
where A - the minimal change in price (for example 0,01 for USD/JPY)
for a given currency pair,
B - the contract size,
n - volume (number of lots),
current quotation for USD/XXX pair. |
| XXX/YYY (cross rates) |
EUR/GBP
GBP/JPY |
(A*B*n)/d,
where A - the minimal change in price (for example 0,01 for USD/JPY)
for a given currency pair,
B - the contract size,
n - volume (number of lots),
d - current quotation for USD/YYY. |
Example:
Let’s calculate the cost of 1 pips per 1.0 lot for GBP/CHF. Let us say, we open 1.0 lot at the purchase price of 2.3300 and close the position at 2.3301.
When opening, we buy 100,000 GBP and sell 2.3300*100,000=233 000 CHF.
When closing the position, we sell 100,000 GBP and buy 2.3301*100,000=233 010 CHF.
The GBP go down while the CHF remain at +10, which gives:
+10/ (USD/CHF currency rate) = +10/1.5270 = 6.55 USD.
Thus, as we earn 1 pips based on 1 lot on the FOREX market for GBP/CHF, we earn 6.55 USD.
This is the 1 pips price for GBP/CHF. Different currency pair pips should be calculated the same way.
Point cost estimate for CFD
CFD point = volume (number of lots) X contract size X the minimal change in price. 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.
|
