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i need help on pip value calculation

Discussion in 'Beginners Bootcamp' started by shappons, Oct 18, 2012.

  1. shappons

    shappons Private, 1st Class

    Joined:
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    i have no problem with EUR/USD pair.

    but m having problem with XAU/USD.
    let assume sell 0.1 lot of gold at 1739 & closed at 1737.38.. gained 1.62

    i computed (0.01/1737.38)100,000=0.57558
    i pip = 0.57558 x 1737.38 = $1000 x 0.1 lot = $100

    gain value= $100 x 1.62 = $162.

    but the trading account shows $16.20.
    where have i gone wrong?


    i also have no idea how to do pip value for FTSE 100 index futures
    assume bought 0.1 lot at 5912.6 & closed at 5915.2.
    how to do the maths?


    thank u in advance.
    shappons
     
  2. Pharaoh

    Pharaoh Colonel

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    You need to ask your broker how they define the size of 1 lot of XAU/USD. It looks like they may have set the size to 1/10 of what you expected.

    BEFORE trading the FTSE 100, find out the size/pip value. It would be bad if you lost a few pips and then found out that it was 10 times larger than you thought.
     

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