# Pip-Wert Berechnung im Forex-Handel - Kagels Trading.

## What is a pip and what does it represent?

That's because the amount of dollars gained or lost depends on many factors.A small shift on the market could lead to huge profits, while on the other hand a big market move could result in just a small profit where both are measured in dollars.Thus, pips remain the only reliable way to quantify fluctuations on the market. A pip value can be defined as the price attributed to a move by one pip on the foreign exchange market.When you have a long position and the price is moving in your favor, your open trade will increase in value.The open position behaves in a similar way when the price moves against you.

The pip value will tell you how much the incremental profit is worth.To get this value, we need to calculate the pip value.Since the value of a pip is very tiny, Forex is always traded in standard lots, mini lots and micro lots. Alamat patra trading tanjung perak. A standard lot is 100,000 units of the base currency; a mini lot is 10,000 units, while a micro lot is 1,000 units of the base currency.We also have a nano lot, which is 100 units of the base currency.Below you can find a list of how the different lot sizes affect the value of a pip. Lot size Units of base currency Volume Pip value in USD 1 standard lot 100,000 1.0 1 pip=\$10 1 mini lot 10,000 0.1 1 pip=\$1 1 micro lot 1,000 0.01 1 pip=\$0.1 1 nano lot 100 0.001 1 pip=\$0.01As we have already described, the pip value shows how much a pip movement contributes to your profit or loss.The pip value is important, because it helps you to manage risk.For example, if you don't understand the pip value, how can you calculate the ideal position size? Cfd simpang 5 semarang. So, if you don't understand the concept of the pip value, it will be difficult for you as a trader to measure and manage your risk.Let's assume that you have a trading account denominated in euros, and you would like to trade 1 standard lot of EUR/USD at the exchange rate of 1.20.In the case of EUR/USD, 1 pip is the same as 0.0001. Pip value = 0.0001/1.20*100,000 = 8.333 Euro Many trading accounts are denominated in US dollars.Whenever the USD is listed second in a currency pair and the account is denominated in US dollars, the pip value does not change.In such a case, a standard lot has a pip value of \$10; a mini lot has a pip value of \$1; and a micro lot has a pip value of \$0.1. Learn forex or stock first. This applies to each currency pair as long as the USD is listed second.Here are some examples: EUR/USD, AUD/USD, GBP/USD, NZD/USD.If the USD is the base currency (listed first in the currency pair), simply use the formula that was mentioned above.