What are XM pips?

In this article.XMpips value calculatorThis section explains how to use the

What are XM pips?

XM pips are a common forex unit used to ascertain the value in different currencies.

It represents 1% of the smallest unit of currency in each country. For example, in Japan, the smallest unit of the Japanese yen is one yen, so one hundredth of one yen, or 0.01 yen, is one pip.

The XM pips are therefore as follows.

When pips are used in forex, they mainly refer to the spread.

The spread is the difference between the bid and offer price. Spreads and transaction fees are transaction costs and should be kept as low as possible.

However, even if spreads are displayed for each currency, it can be difficult to grasp the extent of the spread at a glance.

In such cases, it is very useful to display the spread in pips so that you can see how much the XM spread is.

As such, pips are an indispensable unit of measure in the calculation and are therefore also used as a common unit of measure on XM.

How to use the XMpip value calculator

Access XM's pip value calculator website.

XM's pip value calculator website.Access to.

This service is available even to those who have not opened an account with XM.

Enter four fields (currency pair, base currency of account, account type and lot size)

Enter four fields (currency pair, base currency of account, account type and lot size).

Enter the four fields and click the green [Calculate] button.

Enter the four fields and click the green [Calculate] button.

Click on the green [Calculate] button and the calculation results will be displayed in the red frame in the image below.

Pip value (JPY) Base currency of the account: the amount of profit or loss per pip converted to the base currency of your account.

Currency converted to pip value (USD): profit/loss amount per pip converted to the currency on the right side of the currency pair (in the image above, the currency pair EUR/USD is selected, so the profit/loss amount converted in USD is shown).

It is very easy to check the amount of profit or loss per pip depending on the number of lots.

What the pip value calculator can tell you.

Once this is known, it is easier to determine how many lots and where to set the stop loss to match the funds.

Just enter the type of account and the number of lots and it will automatically calculate the amount. This is especially helpful for minor currency pairs, as it is quite a hassle to do the calculations yourself.

Note that larger lot sizes increase the profit/loss per pip, so beginners should be aware of this.

summary

In this article.XMpips value calculatorexplained how to use the system.