One point value can be calculated by the below formula:
One Point Value = (Contract Size × (Price + One Point)) – (Contract Size × Price)
|One Point Value||One point value in the quote currency. The pip value would be ten times more than the point value.|
|Contract Size||Contract size in the base currency. You can find out in MT4 by right clicking in ‘Market Watch’ and select ‘Symbols’ ⇒ ‘Properties’.|
|Price||Current price of the currency pair.|
|One Point||Price tick (one point)|
Example of the calculation
Calculation of one point value for GBPCHF on a USD account.
- Contract Size – Lot – 1.25 = 125 000 GBP.
- Current rate of GBPCHF – 1.47125.
- Current rate of USDCHF – 0.94950.
One Point Value = (125,000 × (1.47125 + 0.00001)) – (125,000 × 1.47125) = 183,907.5 – 183,906.25 = 1.25 CHF
You need to convert the amount to your base currency which is USD, so:
One Point Value = 1.25 CHF / 0.94950 = 1.31 USD.
Pip value of GBPCHF in USD account would be 13.1 USD.
Pip and Point
Normally, MT4 shows 5 digits price quotes which makes the smallest price move as one point.
And 10 points equals to 1 pip.
FBS offers an online calculator in the FBS Official Website where you can get results instantly.