On this page you can find formula for calculating the value of one pip. The value of a pip is calculated on the basis of the current rate of a given currency pair.
Note that 1 InstaForex lot is 10000 USD.
Please find below a formula to calculate the value of one pip for currency pairs and CFDs:
Calculation of 1 pip value:
Calculation of 1 pip value for a CFD:
p.v. = volume * contract size * minimum price changeWhy does InstaForex Company use 10000 lot instead of standard 100000 one?
InstaForex Company provides an opportunity to trade on three kinds of accounts at the same time: Micro Forex, Mini Forex and Standard Forex. In order to make such a technology possible, a non-standard 10000 lot was established which ensures 0.01 USD pip value if the trade volume is 0.01 lot, i.e. the absolute minimum allowing the holders of 5000 - 10000 USD accounts to effectively control their risks. Moreover, the 10000 lot size makes calculations of a pip value convenient at opening positions.
Simple calculations and the opportunity to combine three formats of forex trading in one account makes InstaForex lots an undeniable advantage of the Company's trading conditions.