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The Invezz 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 calculator
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 works
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 he’s using to make their trades.
Why should I use it?
Spreads matter a lot for forex traders, who often find success simply by realising small profits on their trades when spread betting. 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?
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.