Working outTwo calculators, both running entirely in this page: nothing you type is sent anywhere, and nothing is stored. They do the same arithmetic the lessons do by hand, so a figure here should match the one you worked out on paper. If it does not, the lesson is the place to find out why.
What will this trade cost me?
What a pip is worth
A pip is the smallest standard step in a price — the fourth decimal on most pairs, the second on yen pairs and on metals. What it is worth in money depends on how much of the instrument the position controls, which is the lot size. One standard lot is 100,000 units of the base currency, a mini lot a tenth of that, a micro lot a hundredth. Type a lot size in and the card shows what one pip of movement pays or costs on it.Position size
This is the calculation the course argues should come before any other. Decide the money you are willing to lose on one trade, measure how far away the stop has to sit for the idea to be wrong, and the position size falls out of those two numbers — not out of how confident the trade feels. The card divides the risk in money by the stop distance to get a value per pip, then converts that into lots.What a pip is worth
- Lots
- 0.10
- Value of one pip
- R1.00
Worked on a standard lot of 100,000 units. Your broker may round the pip value and will quote its own spread on top.
Position size
- Risk in money
- R100.00
- Value of one pip
- R2.50
- Lots
- 0.25
USD/ZAR · Worked on a standard lot of 100,000 units. Your broker may round the pip value and will quote its own spread on top.