One of the Invezz calculators, called pip calculator is designed to quantify what each pip means when you’re a trader seeking to make a profit in the forex market. Keep reading to see how our pip calculator works.
How to use our pip calculatorCopy link to section
To use our pip calculator, follow these steps:
- Enter in the currency pair you plan to trade (for instance GBP/USD).
- Enter the currency you’ve deposited into your account that you use to trade.
- Enter the ask price on the trade you’re planning to execute.
- Enter the size of the position you plan to take.
- Click calculate, and our calculator will tell you the value of each pip.
How the pip calculator worksCopy link to section
Our pip calculator uses up-to-date foreign currency exchange rates and the ‘ask’ price of a trade to calculate how much each pip is worth for a forex trader in the currency your using to make your trades.
Why should I use it?Copy link to section
Spreads matter a lot for forex traders, who often find success simply by realising small profits on their trades when use spread betting forex brokers. That’s why it’s important to know the precise value of a pip for your planned trade, so you know exactly the price you’re paying and what the spread on that trade means for your budget and your portfolio.
What is a pip?Copy link to section
A pip measures the spread between the bid and ‘ask’ prices in the exchange rate for a currency pair being traded on the foreign exchange (forex) market. Most currency pairs are calculated to four decimal places, and pips are calculated using the last decimal point.
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