How to calculate the pip value for EUR/USD?

[pirx]

Hi!

Here is what I've constructed in Excel based on reading some money management articles and also based on this site.

The calculation below is presented for a micro account:

INPUT
Account Size: $9000
Stop Size (pips): 50
Risk: 2% ($180)
1 lot size: 1000 units
Pip Value: $0,10/pip
Stop Size * Pip Value: $5,00

OUTPUT
Position Size: 36,00 lots
"Round Down" Position Size: 36,00 lots
True Leverage: 4:1
Resultant Pip Value: $0,40

In order to respect your MM you have to take the following position:
Leverage * Position Size: $36.000
The PIP value is: $3,60

The only thing I'm not sure of is the calculation for the PIP value... I have calculated it like this:

(Leverage * Account Size) / 10.000 or (4 * 9000) / 10.000 = $3,6

Is this correct or is the last calculation wrong? I have also attached the spreadsheet. If someone could check it out and verify that everything is OK, I'd be very thankful. I only plan to trade EUR/USD for now.

Thanks!

 

[Rhody Trader]

Just take lots and multiply by base pip value (36 * $0.10). No need for the extra stuff in the formula since you already have those values in place.

 

[pirx]

Just take lots and multiply by base pip value (36 * $0.10). No need for the extra stuff in the formula since you already have those values in place.

Thank you!