How I Make $30,000 with Simple Strategy:
How to calculate PIP value?
Here is an example of how to calculate the value of 1 Pip for one 10k lot of EUR/USD where the base currency of the account is USD.
Start with 10,000. Multiply 10,000 by .0001 since 1/10,000th is a pip for all pairs (except JPY pairs). 10,000* .0001 = 1.
You now know each pip is worth 1 USD. That will be valued in the “counter currency” (second currency) of the pair.
In this example, we are using the EUR/USD, so USD is the counter currency of the pair. Here, 1 pip is worth 1 USD dollar for 1 – 10k lot of EUR/USD.
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