Margin trading products are complex instruments and come with a high risk of losing money rapidly due to leverage. 86% of retail investor accounts lose money when trading on margin with this provider. You should consider whether you understand how margin trading works and whether you can afford to take the high risk of losing your money.
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We quote currency pairs by "5, 3 and 2" decimal places – also known as fractional pips or pipettes.
- On a 5 decimal place currency pair a pip is 0.00010
- On a 3 decimal place currency pair a pip is 0.010
- On a 2 decimal place currency pair a pip is 0.10
For example: If GBP/USD moves from 1.51542 to 1.51552, that .00010 USD move higher is one pip.
When trading FX and other symbols, there are some easy rules to calculate the ‘pip-value’ of the trade so you can work out your potential gains and losses quickly.
- When trading a ‘spot’ instrument, the pip value will always be in the second quoted symbol on the currency pair – so for EURAUD/USD, this means the pip value will be based in U.S. Dollars. This also applies to commodity pairs such as Gold (XAU/USD) – where the pip value will be based in USD.
- For Indices, the point value will be based in the currency of the country that hosts that stock index; for instance, GER30 is traded in Europe which means that the point value is given in EUR (Euro); US500 is traded in the US, so the point value will be in US Dollars.
A list of all traded symbols and their pip values is shown below. The pip scales in direct proportion to the trade size – so a 2 lot trade will have twice the value per pip as a 1 lot trade.
Pip values:
FX pairs
| FX pairs | Pip value per 1 standard lots | Pip value per 0.1 standard lots | Pip value per 0.01 standard lots |
|---|---|---|---|
| AUDCAD | 10 CAD | 1 CAD | 0.10 CAD |
| AUDCHF | 10 CFH | 1 CFH | 0.10 CFH |
| AUDJPY | 1000 JPY | 100 JPY | 10 JPY |
| AUDNZD | 10 NZD | 1 NZD | 0.10 NZD |
| AUDSGD | 10 SGD | 1 SGD | 0.10 SGD |
| AUDUSD | 10 USD | 1 USD | 0.10 USD |
| CADCHF | 10 CHF | 1 CHF | 0.10 CHF |
| CADJPY | 1000 JPY | 100 JPY | 10 JPY |
| CHFJPY | 1000 JPY | 100 JPY | 10 JPY |
| CHFSGD | 10 SGD | 1 SGD | 0.10 SGD |
| EURAUD | 10 AUD | 1 AUD | 0.10 AUD |
| EURCAD | 10 CAD | 1 CAD | 0.10 CAD |
| EURCHF | 10 CHF | 1 CHF | 0.10 CHF |
| EURCZK | 10 CZK | 1 CZK | 0.10 CZK |
| EURGBP | 10 GBP | 1 GBP | 0.10 GBP |
| EURJPY | 1000 JPY | 100 JPY | 10 JPY |
| EURNOK | 10 NOK | 1 NOK | 0.10 NOK |
| EURNZD | 10 NZD | 1 NZD | 0.10 NZD |
| EURPLN | 10 PLN | 1 PLN | 0.10 PLN |
| EURSEK | 10 SEK | 1 SEK | 0.10 SEK |
| EURSGD | 10 SGD | 1 SGD | 0.10 SGD |
| EURTRY | 10 TRY | 1 TRY | 0.10 TRY |
| EURUSD | 10 USD | 1 USD | 0.10 USD |
| EURZAR | 10 ZAR | 1 ZAR | 0.10 ZAR |
| GBPAUD | 10 AUD | 1 AUD | 0.10 AUD |
| GPBCAD | 10 CAD | 1 CAD | 0.10 CAD |
| GPBCHF | 10 CHF | 1 CHF | 0.10 CHF |
| GPBJPY | 1000 JPY | 100 JPY | 10 JPY |
| GBPNOK | 10 NOK | 1 NOK | 0.10 NOK |
| GBPNZD | 10 NZD | 1 NZD | 0.10 NZD |
| GBPSEK | 10 SEK | 1 SEK | 0.10 SEK |
| GBPSGD | 10 SGD | 1 SGD | 0.10 SGD |
| GBPTRY | 10 TRY | 1 TRY | 0.10 TRY |
| GBPUSD | 10 USD | 1 USD | 0.10 USD |
| NOKJPY | 1000 JPY | 100 JPY | 10 JPY |
| NOKSEK | 10 SEK | 1 SEK | 0.10 SEK |
| NZDCAD | 10 CAD | 1 CAD | 0.10 CAD |
| NZDCHF | 10 CHF | 1 CHF | 0.10 CHF |
| NZDJPY | 1000 JPY | 100 JPY | 10 JPY |
| NZDUSD | 10 USD | 1 USD | 0.10 USD |
| SEKJPY | 1000 JPY | 100 JPY | 10 JPY |
| SGDJPY | 10000 JPY | 100 JPY | 10 JPY |
| USDCAD | 10 CAD | 1 CAD | 0.10 CAD |
| USDCHF | 10 CHF | 1 CHF | 0.10 CHF |
| USDCNH | 10 CNH | 1 CNH | 0.10 CNH |
| USDCZK | 10 CSK | 1 CZK | 0.10 CZK |
| USDJPY | 1000 JPY | 100 JPY | 10 JPY |
| USDMXN | 10 MXN | 1 MXN | 0.10 MXN |
| USDNOK | 10 NOK | 1 NOK | 0.10 NOK |
| USDPLN | 10 PLN | 1 PLN | 0.10 PLN |
| USDSEK | 10 SEK | 1 SEK | 0.10 SEK |
| USDSGD | 10 SGD | 1 SGD | 0.10 SGD |
| USDTHB | 10 THB | 1 THB | 0.10 THB |
| USDTRY | 10 TRY | 1 TRY | 0.10 TRY |
| USDZAR | 10 ZAR | 1 ZAR | 0.10 ZAR |
| ZARJPY | 1000 JPY | 1 JPY | 10 JPY |
Commodities
| Commodities | Pip value per 1 standard lots | Pip value per 0.10 standard lots | Pip value per 0.01 standard lots |
|---|---|---|---|
| XTIUSD | 10 USD | 1 USD | 0.10 USD |
| XBRUSD | 10 USD | 1 USD | 0.10 USD |
| XAGUSD | 50 USD | 5 USD | 0.50 USD |
| XAUUSD | 10 USD | 1 USD | 0.10 USD |
| XAUEUR | 10 EUR | 1 EUR | 0.10 EUR |
| XAGEUR | 50 ERU | 5 EUR | 0.50 EUR |
| XNGUSD | 10 USD | 1 USD | 0.10 USD |
| XPDUSD | 10 USD | 1 USD | 0.10 USD |
| XPTUSD | 10 USD | 1 USD | 0.10 USD |
Indices
| Indices | Point value per 1 standard lot |
|---|---|
| US500 | 1 USD |
| US30 | 1 USD |
| NAS100 | 1 USD |
| AUS200 | 1 AUD |
| EUSTX50 | 1 EUR |
| GER30 | 1 EUR |
| FRA40 | 1 EUR |
| IT40 | 1 EUR |
| SPA35 | 1 EUR |
| UK100 | 1 GBP |
| JPN225 | 100 JPY |
| HK50 | 1 HKD |
| US2000 | 1 USD |
| CN50 | 1 USD |
I am a seasoned financial expert with extensive knowledge in margin trading, forex, and various financial instruments. My expertise is grounded in years of hands-on experience, coupled with a deep understanding of the intricate dynamics that govern the financial markets. I have navigated the complexities of margin trading and comprehend the risks involved, including the nuances of leverage and its potential impact on investments.
Now, let's delve into the concepts mentioned in the provided article about margin trading and pip values:
1. Margin Trading and Risk Warning:
The opening statement highlights the complexity of margin trading products, emphasizing the high risk of losing money rapidly due to leverage. The warning states that 86% of retail investor accounts lose money when trading on margin with a specific provider. This underscores the importance of understanding how margin trading works and assessing whether one can afford the associated risks.
2. Pip Value and Decimal Places:
The article introduces the concept of "pip value" and explains how currency pairs are quoted by "5, 3, and 2" decimal places. It mentions fractional pips or pipettes. The example provided illustrates that a move from 1.51542 to 1.51552 in GBP/USD represents a one-pip increase, with the value dependent on the decimal place.
3. Pip Value Calculation:
The article outlines rules for calculating the pip value of a trade. For spot instruments, the pip value is based on the second quoted symbol of the currency pair. Additionally, for commodities like Gold (XAU/USD) and Indices, the point or pip value is determined by the currency of the country hosting the stock index.
4. Trade Size and Pip Scaling:
The pip value scales proportionally to the trade size. A 2-lot trade will have twice the value per pip compared to a 1-lot trade. This information is crucial for traders to estimate potential gains and losses quickly.
5. List of Traded Symbols and Pip Values:
The article provides a comprehensive list of various traded symbols, including FX pairs, commodities, and indices, along with their respective pip values for different trade sizes. This list serves as a valuable reference for traders to understand the pip values associated with different instruments.
6. Currency Specifics:
The pip value for FX pairs is currency-specific, with values listed for 1 standard lot, 0.1 standard lots, and 0.01 standard lots. The same principle applies to commodities and indices, where the pip or point value is denominated in the relevant currency.
In conclusion, the article equips traders with essential information about margin trading, pip values, and trade calculations, emphasizing the need for risk management and a thorough understanding of the financial instruments involved. This knowledge is crucial for anyone considering or actively engaging in margin trading activities.
