Contract specifications

Pips - Currency price moves are typically quoted in pips (short for ‘percentage in point’). A pip is the smallest price move that a currency can make.

• Most currency pairs are priced to 4 decimal places and the pip change is the fourth decimal point. Example: GBP/USD 1.39085 – 1.39095

• Japanese Yen pairs are the exception, quoted to two decimal places, so the pip change is the second decimal point. Example: USD/JPY 110.156 – 110.164

• Currency indices follow the same standards as the individual pairs, e.g. the JPY Index is quoted to two decimal places.

Pip value - is the profit or loss based on the value of your position and a single pip price movement.

pip size x position size (in quote currency)

Based on the GBP/USD and USD/JPY currency pairs above, for a standard lot of 100,000 of the base currency, Pip Values in the quote currency would be as follows.

• Example: GBP/USD
  Pip Value = pip size x position size (in quote currency)
  Pip Value = 0.0001 x 100,000
  Pip Value = 10 USD

  For each single Pip move in the price of GBP/USD your position will gain or lose 10 USD.

• Example: USD/JPY
  Pip Value = pip size x position size (in quote currency)
  Pip Value = 0.01 x 100,000 USD
  Pip Value = 1000 JPY

  For each single Pip move in the price of USD/JPY your position will gain or lose 1000 JPY.

If you wanted to convert that to USD, then you could use the current USD/JPY price to convert 1000 JPY into USD.

USD value = 1000 JPY / 110.164 = 9.08 USD.