Here's the formula you'll need to calculate the value of one pip: OnePointValue = (Contract × (Price + OnePoint) ) - (Contract × Price)
Example: Let's calculate the value of one pip on the GBPCHF pair in USD.
Now let's do the maths:
Please note: If USD were the quote currency in our calculation (for example when converting the pip value in pounds to dollars with the GBPUSD rate) we would need to multiply the pip value of the base currency with the exchange rate in order to make the conversion to dollars (Pip Value in Pounds × GBPUSD Rate = Pip Value in USD). In this example, since USD is the base currency in USDCHF, we need to divide the pip value in Swiss francs by the USDCHF rate:
OnePointValue = 14.3 CHF / 1.1659 = 12.27 USD
With spot metals, pip values are fixed. You can check out the pip values of our various spot metal instruments in our Contract specifications. Pip values can be calculated on any currency pair using the formula above.
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