Overview ~ Currency Rates
This Currency Rates tab of the Calculator lets you see what your current pip values and spreads are. This is also where you can customize your Currency pair dropdown menus throughout the Calculator.
Pip values are a big part of accurately figuring out your recommended position size for your trade. But you don’t need to pay any attention to the pip values or know anything about them. The Advanced Calculator does all the work for you.
If you’re curious though, the Currency Rates tab lets you lift up the hood of the car and look inside to see the engine and see how the car works. The pip values are just shown for your interest.
The pip value can be defined as how much you will make or lose by a one pip move on a currency pair (excluding swap or commission costs).
The Calculator shows you pip values for 1 standard lot. If you trade 1 mini-lot the Calculator will internally divide that pip value by 10; for 1 micro-lot the pip value is divided by 100 and for units the pip value is divided by 100000.
For example, notice below the respective readings for the Pip Values of the AUDCAD and the EURUSD – 7.1585 and 10 on a recent day. That means if you place a trade with 1 standard lot on the EURUSD and make 1 pip in profit, you will have made $10. If you place a trade with 1 lot on the AUDCAD and make 1 pip, you will have made $7.16.
Most pip values are constantly changing through live trading sessions as the prices of their underlying currencies change. There are 4 currency pairs that do not have changing pip values:
The pip value for these four pair will always be $10. All the other currency pairs will change. If you connect your Advanced Calculator to an MT4 platform, as we recommend, you’ll be able to see these changing values in real time. Each time there is a 1 tick change in the pip value, you’ll notice your reading on the Currency Rates tab highlights yellow for a moment.
The Currency Rates tab also has a column displaying the spread for each listed pair. The spread is the difference between the bid price and the ask price.
Bid and Ask prices are being imported from the MT4 you’ve hooked up to the Calculator, while the spread is being calculated within the Calculator by doing the math ASK-BID = Spread. Each time there is a 1 tick change in the Bid or Ask price, you’ll notice your reading on the Currency Rates tab highlights yellow for a moment.