In XM Trading’s FX, a currency pips calculator is necessary, and we will explain how to display value and pips. If you trade with XM, you will not be able to read important information such as profit and loss and spreads unless you understand pips. Learning about pips is essential for trading, so be sure to remember it.
What are pips?
A pip is the smallest unit or 1% of the currency being traded. The minimum unit of Japanese yen is 1 yen, so 1/100 of 1 yen, that is, 0.01 yen is equivalent to 1 pips. The smallest denomination of the US dollar is 1 cent ($0.01), not 1 dollar. The smallest unit of dollar is 1/10000 of 1 dollar, i.e. 1 pip is 0.0001 dollar
How much 1 pip will be depends on the currency as follows.
Japanese yen: 1 pip = 0.01 yen
Other than Japanese yen: 1 pip = 0.0001 currency
What is the profit and loss of XM pips? Japanese yen
Let’s see how to calculate how much XM’s pip profit and loss will be. The idea of the calculation method is that profit and loss can be calculated based on how much currency quantity was traded at 1 pip.
The profit and loss when trading 1 lot (100,000 currency) of USD/JPY (US dollar / Japanese yen) of XM is 100,000 currency x 0.01 yen = 1,000 yen, and profit and loss of 1,000 yen per 1 pips will occur.
If you trade 0.01 lot (1,000 currency), which is the minimum trading unit of XM, you will have a profit and loss of 10 yen per 1 pips.
Even if it is the same pips, the profit and loss of the trade will change as the currency volume of the trade is different.
What is the profit and loss of XM pips? Foreign currency
For currency pairs denominated in foreign currencies, even if you trade with the same currency volume, the rate of each currency is different, so the profit and loss per 1 pip of XM is different.
The profit and loss calculation method first needs to be “transaction currency quantity x 0.0001 x currency rate of each country”, and then it is necessary to obtain the amount equivalent to Japanese yen.
When trading EUR/USD (Euro/USD) in 1 lot at 1 EUR = 0.8 USD and 1 USD = 100 JPY,
100,000 currency x 0.0001 x $0.8 = $0.8, $0.8 x ¥100 to ¥80, profit and loss per pip is ¥80.
XM pip calculator tool
The official XM website currently offers many useful tools on the screen, so be sure to make use of them. One of them is a tool that calculates pips, so please make use of it. Utilize your funds to maximize your profits in real time. The conversion also takes into account the stock and swap. Log in and check. It is registered all at once and is easily calculated automatically. It calculates losses etc. for the status of the target products such as stocks, settlement currencies, gold, precious metals, and energy.
Pip value = Amount that moves when 1pips fluctuates. It means that if you hold 5 lots of dollar yen and change 1 pip, it will move 5,000 yen.
In addition to calculating pips, you can also use margin calculations and swap point calculations for free, so it is recommended for those who are not good with numbers. We recommend selecting this when calculating the number of positions using bonuses, etc. You can see basic details such as pips fees and leverage. Click on the price of FX or CFD to check it and then enter. It can be applied to Kiwami and standard accounts.
コメント