What is the formula for determining the pip value in digital currency trading?

1 answers

• Bundgaard NicolaisenApr 11, 2023 · 3 years ago
  Determining the pip value in digital currency trading is crucial for risk management and position sizing. The formula is simple: pip value = pip size * lot size * exchange rate. The pip size is the smallest price increment in a currency pair, usually 0.0001. Let's say you have a lot size of 1 and the exchange rate is 1.3000. The pip value would be 1 * 0.0001 * 1.3000 = $0.00013. This means that for every pip movement, your trade's value will change by $0.00013. Understanding how the pip value is calculated allows you to make informed decisions and manage your trades effectively.
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