# Calculating the value of one PIP



## Seneca60BC (17 October 2008)

Hi Guys

I understand that EUR/USD, 1 pip is worth $10, with a lot size of 100,000.

Now, what happens when I buy a lot size of 30,000.  What is the value of one PIP.

Is it still $10 or $3.33 ? (100,000 / 30,000) 

Thanks!


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## prawn_86 (17 October 2008)

$3.33


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## tayser (17 October 2008)

$3.00 USD

10,000 GBP/AUD = $1AUD
100,000 EUR/USD = $10USD
1,000,000 USD/CAD = $100CAD
10,000,000 EUR/JPY =  ¥100,000JPY 
100,000,000 USD/CHF = 10,000CHF


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## Page (27 February 2009)

Pip stands for "price interest point" and refers to the smallest incremental price move of a currency. Tick size is the smallest possible change in price. Pip value for direct rates are calculated according to the following formula:
Formula: Pip = lot size x tick size
Example for 100,000 GBP/USD contract:
1 pip = 100,000 (lot size) x .0001 (tick size) = $10.00 USD


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## Timmy (4 March 2009)

Page said:


> Pip stands for "price interest point"




I would be interested to know the etymology of "pip" in this context.  I think ascribing "pip" as the acronym of "price interest point" is an example of a backronym.


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## Page (4 March 2009)

Timmy said:


> I would be interested to know the etymology of "pip" in this context.  I think ascribing "pip" as the acronym of "price interest point" is an example of a backronym.




More specifically PIP is the smallest price change that a given exchange rate can make. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point - for most pairs this is the equivalent of 1/100 of one percent, or one basis point.

You are right friend PIP is a backronym and it came from the "Price interest point".


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## BentRod (4 March 2009)

Page said:


> More specifically PIP is the smallest price change that a given exchange rate can make. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point - for most pairs this is the equivalent of 1/100 of one percent, or one basis point.
> 
> You are right friend PIP is a backronym and it came from the "Price interest point".




More copy and paste crap without source, this time taken from investopedia


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## Trembling Hand (4 March 2009)

BentRod said:


> More copy and paste crap without source, this time taken from investopedia



  :ald:


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