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Calculating Pip Value   The pip value needs to be calculated with the currency outcome in mind. Currency pairs can be segmented into direct, indirect and cross currency pairs. 1300 825 742 member login blog commentary video results news & analysis trader tools book store client feedback

Calculating Direct Currency Pairs If calculating in AUD then a direct currency pair calculation is selected. This refers to the quote currency to be the currency of the outcome, e.g. Direct = CHF/AUD,   Direct currencies where AUD is the quote currency then the following formula can be used: 1pip = lot size (100,000) x tick size (0.0001) = $10 Calculating Indirect Currency Pairs If calculating in AUD and the base currency is AUD, then an indirect formula can be used, e.g. Indirect = AUD/USD, AUD/JPY, AUD/NZD, AUD/EUR   1pip = lot size (100,000) x tick size (0.0001)/ currency rate = $10.78   For example if the UAD/USD is trading at 0.92710 then: 1Pip = 100,000 x 0.0001 / 0.92710 = $10.78 Calculating Cross Currency Pairs Direct currencies where AUD is not either the quote or base currency, e.g. Cross = EUR/USD, GBP/USD, GBP/JPY, USD/CAD, then the following formula can be used   1pip = lot size (100,000) x tick size (0.0001) x AUD/base currency/ currency rate = $10.45   For example if the EUR/USD is trading at 1.48375 then and the EUR/AUD is trading at 1.55110 then: 1Pip = 100,000 x 0.0001 x 1.55110 / 1.48375 = $10.45

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