# Forex Calculator

The value of a pip is calculated on the basis of the current rate of a given currency pair.

Please note that 1 lot of InstaForex is equal to 10,000 units of the base currency.

You can find below a formula to calculate the value of one pip for currency pairs and CFDs:

Calculation of 1 pip value:

1. XXX/USD

p.v. = 1 * (trade size)

2. USD/XXX

p.v. = 1 / (USD/XXX) * (trade size)

For USD/JPY p.v. = 100 / (USD/JPY) * (trade size)

For USD/RUB and EUR/RUB p.v. = 10 / (USD/RUB) * (trade size)

3. AAA/BBB

p.v. = (AAA/USD) / (AAA/BBB) * (trade size )

Calculation of 1 pip value for a CFD:

p.v. = volume * contract size * minimum price change

Why does InstaForex use 10000 lot instead of the standard 100000 one?

InstaForex provides an opportunity to trade on Forex using three types of accounts in one: Micro Forex, Mini Forex, and Standard Forex. In order to make this technology possible, the company came up with a non-standard 10000 lot, which at the trade of 0.01 lot gives the pip value of 0.01 USD, i.e. the absolute minimum. It enables the holders of accounts up to 5,000-10,000 to control their risks effectively. What is more, the lot size of 10,000 makes it convenient to calculate the pip value when opening deals.

Just have a look at the information below:

0.01 InstaForex lot trade= 0.01 USD pip value

0.1 InstaForex lot trade= 0.1 USD pip value

1 InstaForex lot trade= 1 USD pip value

10 InstaForex lot trade = 10 USD pip value

100 InstaForex lot trade = 100 USD pip value

1000 InstaForex lot trade = 1000 USD pip value

The value of a pip is indicated in the base currency of the quote.

Easy ways to calculate the pip value and the opportunity to combine three levels of Forex trading in one trading account at once makes InstaForex lots an indisputable advantage of the company's trading terms.

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