• What is pips in CFD trading?
• How to calculate Pip value?

What is pips in CFD trading?

This is an increment used to account for both losses and profits and it is the commonly used in the forex market, to mean “points” or even “ticks”.

But when it comes to the CFD products, the “pip” is used to refer to the last digit in a price quotation.

The general value of a pip basically depends on both the common currency of your account, CFD product that you are trading and the overall size of your trade.

A trader is able to view the existing pip value of just any instrument in his or her trading account in the Dealing Rates window which is in the pip cost.

The Pip Cost clearly indicates how much loss or profit 1 pip is worth if you are holding 1 CFD of that same instrument.

All this is displayed in the common currency in your account.

How to calculate Pip value?

Value of pip can be calculated with the following formula.

0.0001 or 0.01 x notional value*

For example of 1 lot of EUR/USD.

0.0001 x 100,000 (1 lot= 100,000) = 10 USD.

Alternatively, you can find the value of a pip using our Pip Calculator.

Please note that pip value is always denominated in the quote currency. You can find all information on the Contract Specifications page.