How much is a pip worth?
First we need to know how much value does a pip have in percentage. A pip’s value in percentage is calculated by multiplying the cross rate’s value per 100, and then dividing the leverage value by that number. So, a pip value on the EUR/USD cross that has a value of 1.2100 with a 10/1 leverage is calculated like this: 10/(1.21*100) which would give us a result of around 0.0826%, so a pip value with a 1,000 capital, would be 1,000*0.0826, that means US$82.64 at 10/1, or US$8.26 at 1/1 leverage. So at a 1.21 EUR/USD rate and with a US$1,000 investment, a 10 pips move would be worth around US$82 at 1/1 and US$826 at 10/1. There are brokers that let us trade freely any amount we like, and others where we can only trade in contracts or mini contracts with fixed amounts. 12. In which pairs does the system work? Our systems at the moment only work with the EUR/USD cross, for being the most liquid and traded cross. 13. Will the system be giving signals for other crosses later? We’re thinking a
