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 130.156 – 130.164

• 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 value = (pip size / exchange rate) x position size

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

• Example: GBP/USD 1.39085 – 1.39095
  Pip Value = (Pip size / exchange rate) x position size
  Pip Value = (0.0001/1.39095) x 100,000 GBP
  Pip Value = 7.19 GBP

  For each single Pip move in the price of GBP/USD your position will gain or lose 7.19 GBP.

• Example: USD/JPY 130.156 – 130.164
  Pip Value = (Pip size / exchange rate) x position size
  Pip Value = (0.01/130.164) x 100,000 USD
  Pip Value = 7.68 USD

  For each single Pip move in the price of USD/JPY your position will gain or lose 7.68 USD.